- Copper extends weakness for 4th straight session, extends grind along cloud base.
- Upside is capped below 5-DMA, which is immediate resistance at 3.074.
- Copper is being dragged lower along with the larger commodity space as USD dollar strength weighs.
- The pair had been struggling to get past 50-DMA resistance which currently hovers at 3.084.
- Price has retraced from highs of 3.090 and is currently at 3.062, down 0.1% on the day.
- Technical studies are bearish, scope for test of trendline support at 3.00 which is also 38.2% Fib.
- Violation there could see further downside which opens up downside till next support at 2.95.
- On the flipside, we see 50-DMA as strong resistance and any upside only on decisive break above.
Support levels - 3.00 (trendline & 38.2% Fib), 2.950(trendline), 2.895 (50% Fib)
Resistance levels - 3.074 (5-DMA), 3.084 (50-DMA), 3.102 (cloud top)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Copper-capped-below-50-DMA-further-weakness-on-charts-stay-short-on-rallies-1297573) is progressing well.
Recommendation: Stay short.
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