- Copper extends break below 5-DMA, slips lower for 4th successive session, bias bearish.
- The pair is currently down 0.14% on the day, currently trading at 3.098.
- Technical studies are bearish. Stochs and RSI sharply lower. MACD shows bearish crossover on signal line.
- Price action has broken below 20-DMA and is on track to test next major support at 50-DMA at 3.056.
- Violation at 50-DMA could see further weakness. Scope then for test of major trendline at 3.02.
- On the flipside, retrace above 5-DMA could see bearish invalidation.
Support levels - 3. 056 (50-DMA), 3.020 (trendline support), 3.0
Resistance levels - 3.115 (20-DMA), 3.151 (5-DMA), 3.236 (Oct 24 high)
Recommendation: Book partial profits at lows. Trail stop loss to 3.150, stay short for further downside.
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