- Copper is extending declines steadily from multi-month peak of 3.32 hit in December.
- Price action has breached major supports: 50-DMA, 100-DMA, daily cloud and major trendline support.
- Technical studies are bearish: RSI and Stochs are biased lower, -ve DMI dominance, MACD biased lower.
- Price has broken below 21W EMA and technical indicators on weekly charts are also bearish.
- We see scope for test of 3.00 (38.2% Fib retrace of 2.472 to 3.320 rally) ahead of 200-DMA at 2.942.
- We see bearish invalidation on retrace and close above 100-DMA (currently at 1.123).
Support levels - 3.030 (tested multiple times), 3.00 (38.2% Fib retrace of 2.472 to 3.320 rally), 2.942 (200-DMA)
Resistance levels - 3.120 (nearly converged 100-DMA and 23.6% Fib), 3.165 (50-DMA), 3.19 (cloud top)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Copper-holds-50-DMA-support-short-break-below-target-3120-1121832) has hit all targets.
Recommendation: Book partial profits at lows. Trail stop loss to 3.125, hold for 3.035/ 3.0/ 2.9945.
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