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)
Short break below 50-DMA, SL: 3.120, TP: 3.010/ 2.940
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)
Short break below 50-DMA, SL: 3.120, TP: 3.010/ 2.940