- Copper has failed to hold spike above 50-DMA on Thursday's trade.
- The pair has edged lower to currently trade at 2.670.
- Upside remains capped by 50-DMA at 2.6767. Price action contained within daily cloud.
- We see the pair trading in a downward sloping channel, and break below 5-DMA will add downside pressure.
- We have evidenced a bearish RSI divergence which keeps downside bias intact.
- Momentum studies are neutral, break above major resistance at 2.675 (trendline and 50-DMA) could see test of 2.767 (Mar 1 high).
- On the flipside break below 100-DMA could see scope for test of 2.485 (trendline support).
Support levels - 2.6642 (5-DMA), 2.6358 (cloud base), 2.6255 (100-DMA), 2.485 (trendline)
Resistance levels - 2.6766 (50-DMA), 2.686 (March 29 high), 2.70, 2.7191 (cloud top)
Call update: We had advised a short call (http://www.econotimes.com/FxWirePro-Copper-rejected-at-50-DMA-good-to-go-short-on-break-below-5-DMA-at-26550-617080).
Recommendation: Hold for targets.
