Technical Analysis

Copper Extended Recovery Pressures Key Barriers at $3.1053 and $3.1174

Typography

Copper extends steep recovery into third day and tests barrier at $3.1053 (falling 20SMA).

Higher base is forming at $3.0324 with recovery being tracked by rising daily cloud and metal's price supported by firmer China's housing sector numbers.

Recovery eyes pivotal barrier at $3.1174 (Fibo 38.2% of $3.2580/$3.0305 downleg), close above which would signal further correction and expose barrier at 3.1360 (daily Kijun-sen).

Daily techs are mixed and lacking momentum which may result in recovery stall on failure to clear $3.1053/$3.1174 (20SMA / Fibo 38.2%) pivots.

Initial support at $3.0795 (10SMA) holds today's action. Break here would soften near-term tone, while extension and close below 55SMA ($3.0659) would generate bearish signal and turn near-term focus lower.

Res: 3.1053; 3.1174; 3.1360; 3.1442
Sup: 3.0793; 3.0659; 3.0485; 3.0324

Author: Windsor Brokers LtdWebsite: http://www.windsorbrokers.com/
Windsor Brokers Ltd
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