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FxWirePro: Copper finds strong support at 2.583, good to go short on decisive break below

  • Copper fails to hold break above channel top, slips back into daily cloud.
     
  • Downside is holding strong support at 2.583, break below could see further drag.
     
  • Technical indicators support downside, RSI is biased lower, Stochs have rolled over from near overbought levels.
     
  • Break below 20-DMA could see downside till 23.6% Fib of 2.822 to 2.472 fall at 2.555.
     
  • On the flipside, we see scope for upside only on decisive break above channel top at 2.620.

Support levels - 2.583 (cloud base & 20-DMA), 2.555 (23.6% Fib), 2.515 (June 6 low)

Resistance levels - 2.620 (nearly converged channel top & 100-DMA), 2.647 (50% Fib), 2.688 (61.8% Fib), 2.693 (May 1 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Copper-breaks-major-trendline-resistance-at-2625-good-to-go-long-on-dips-749817) is stopped out.

Recommendation: Watch out for break below 20-DMA to go short.

 

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