- Copper has been struggling to break past 20-DMA from the past couple of sessions.
- We see slight bullish divergence between price action and RSI which has raised scope for upside.
- Technical studies are neutral for now, RSI and Stochs are biased north.
- Break above 20-DMA with RSI rise above 50 could add upside momentum.
- Price action was rejected at lows on Thursday's trade with a hammer formation.
- 200-DMA at 2.4625 is strong support on the downside, we see weakness only on break below.
Support levels - 2.5422 (5-DMA), 2.484 (May 18 low), 2.4625 (200-DMA)
Resistance levels - 2.5520 (Weekly 5-SMA), 2.5928 (50-DMA), 2.6198 (Cloud base)
Recommendation: Good to go long on breakout above 20-DMA, SL: 2.485, TP: 2.5930, 2.60/ 2.61/ 2.6250
