Copper price eased to $2.7880 on Tuesday after double upside rejection at $2.8695/55, where bullish acceleration was capped by falling 100SMA.
Copper was boosted by fading fears about an escalation of trade conflict between US and China but came under pressure on revived concerns about trade war, which could affect demand for the metal.
Along with weakening fundamentals, technical studies start to generate negative signals, as slow stochastic turned south and created bear-cross, attempting to reverse from overbought territory while 14-d momentum is reversing from highs.
Copper price is holding in the middle of thick daily cloud, with a plenty of space for corrective action towards strong supports at $2.7616 (Fibo 38.2% of $2.5870/$2.8695 upleg) and 2.7280/40 (converged daily Tenkan-sen / Kijun-sen / 50% retracement, which should contain extended dips to keep bulls off higher base at $2.58 zone alive.
Strong bullish signal could be expected on close above Fibo barrier at $2.8425 (Fibo 38.2% of $3.3140/$2.5510) and 100SMA ($2.8736) which would open way for further recovery.
Res: 2.8305, 2.8425, 2.8695, 2.8736
Sup: 2.8028, 2.7880, 2.7616, 2.7280