Copper Price Analysis: Closer to 200-DMA support at monthly low
|- Copper refreshes multi-day bottom on breaking 17-day-old support.
- Bearish MACD, sustained trading below 50-DMA also favors sellers.
Copper prices on Comex remain pressured around $4.1765, down 1.64% intraday as European traders brace for Monday’s tasks.
The red metal recently broke a horizontal area comprising lows marked since August 26, also extending Thursday’s downside break of 50-DMA to refresh the monthly low.
Given the bearish MACD, copper prices are likely declining further towards the next key support, namely the 200-DMA level near $4.1300.
However, a break of which will challenge the commodity traders with an ascending support line from late January, as well as 61.8% Fibonacci retracement of January-May upside, near $4.0000.
Meanwhile, the corrective pullback may aim for the support-turned-resistance line near $4.2100 before the 50-DMA level near $4.3220.
It’s worth noting that copper bears remain in control unless the quote rises past a downward sloping resistance line from May, near $4.4500.
Price of copper: Four-hour chart
Trend: Further weakness expected
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