Copper – recovery from 3.1758 footstep lacks momentum
|COPPER
Copper price rose on Thursday, boosted by strong Chinese IP data and better than expected Q4 GDP numbers.
The metal bounced from strong support at $3.1758 (Fibo 38.2% of $2.9425/$3.3200 upleg) reinforced by rising 30SMA, where corrective leg from $3.3200 peak found footstep.
No clear signal for near-term direction as daily studies are mixed (RSI is moving sideways in neutral 50 zone; momentum remains negative; slow stochastic approaching oversold territory; MACD is descending but holding well above the midline).
Falling 10SMA marks initial resistance at $3.2229 with break here needed for initial bullish signal and extension above 20SMA ($3.2411) to confirm reversal and signal higher low.
Near-term price action remains capped by thick hourly cloud (spanned between $3.2020 and $3.2363) and the downside would remain at risk while cloud limits recovery attempts.
Bearish scenario requires sustained break below $3.1758 pivot to signal continuation of bear-leg from $3.3200 towards supports at $3.1397 (55SMA) and $3.1046 (100SMA).
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