- 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.
