Copper: Mixed signals from daily techs keep the price directionless and in narrowing range

Slobodan Drvenica Windsor Brokers

COPPER

Copper price eased on Friday after Chinese data showed a sharp decline of metal's imports in December. The price was down to the session low at $3.2215, on decline from Asian high at $3.2475. Near-term price action is moving within narrowing range and holding between rising 20SMA and descending 10SMA on daily chart. Mixed signals from daily techs (daily MA's in overall positive setup; bullish signal from slow stochastic but weakening momentum) causes current directionless mode. Close below 20SMA ($3.2230) will be bearish signal for extension of corrective leg from $3.3200 top towards next support at $3.1758 (Fibo 38.2% of $2.9425/$3.3200 upleg. Conversely, sustained break above 10 SMA ($3.2450) would sideline downside threats and signal stronger recovery.

Res: 3.2450; 3.2730; 3.2766; 3.2970
Sup: 3.2230; 3.2065; 3.1758; 3.1551

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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