Copper started trading in August in red and was down 2.4% in early trading on Wednesday, pressured by renewed trade war fears.
The metal extends broader weakness, as past two months ended in red with monthly losses of 4.85% (July) and 3.2% (June).
Completion of failure swing pattern on daily chart warns of extension towards key near-term support at $2.6720 (19 July one-year low, break of which would spark further weakness for test of $2.6250 (weekly 200SMA / 50% of larger $1.9360/$3.3140 rally).
Weakening momentum and daily MA’s turning to full bearish setup support the notion along with bearish fundamentals.
Converged 10/20SMA’s ($2.7841) are expected to cap and maintain bearish bias.
Res: 2.7841, 2.8270, 2.8475, 2.8655
Sup: 2.7495, 2.7325, 2.7160, 2.6720
