Copper – recovery attempts face strong headwinds from daily cloud top barrier
|COPPER
Copper extended recovery into second straight day on Thursday, but gains faced strong headwinds from significant barrier at $3.1033 (daily cloud top / Kijun-sen).
Price pulled back on fresh strength of the US dollar and concerns about weaker demand from China - metal’s top world consumer.
Signals from daily chart are mixed as strong bullish momentum supports the advance, but the price was so far unable to break above a cluster of daily MA’s between $3.0840 and $3.0986 and today’s advance capped by 200SMA.
Risk of deeper pullback would persist while near-term price action holds below 200SMA / daily cloud top.
Boundaries of daily cloud are key, as close above cloud top would generate bullish signal for extension towards next strong barriers at $3.1245 (Fibo 61.8% of $3.1935/$3.0130) and $3.1295 (14 May high).
Conversely, return and close below daily cloud would weaken near-term structure for retest of $3.0335 (15 May low) and possible extension towards $3.0130 (08 May spike low).
Res: 3.0986; 3.1033; 3.1245; 3.1295
Sup: 3.0820; 3.0675; 3.0605; 3.0430
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.