- Copper is trading largely unchanged on the day, retraces from lows of 3.065.
- Price action has taken support at 50-DMA at 3.067, we expect weakness to resume on break below.
- We notice Doji formation at lows on daily charts which calls for caution.
- Technical studies however support downside in the pair and we would recommend short position below 50-DMA.
- Technical indicators on weekly charts have also turned bearish, Stochs and RSI have rolled over from overbought levels and biased lower.
- Break below 50-DMA raises scope for test of 100-DMA at 2.9422. Bearish invalidation on break above 20-DMA at 3.1487.
Support levels - 3.067 (50-DMA), 3.010 (Oct 9 low), 2.9422 (100-DMA)
Resistance levels - 3.115 (5-DMA), 3.149 (20-DMA), 3.182 (Nov 1 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Copper-breaks-below-5-DMA-on-track-to-test-50-DMA-at-3054-good-to-short-rallies-974952) has almost hit TP2.
Recommendation: Book partial profits at lows. Watch out for break below 50-DMA for further downside.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
