FxWirePro: Copper takes 50-DMA support at 3.067, break below to see further downside

• 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.

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