Copper future contract with delivery in March is clearly in an uptrend since December 5, where it turned increasingly bullish following the rebound on 2.9398. The price snapped the 14 winning days, recording a red session on December 28 after it hit a near 4-year high at 3.3175.
In addition, the red metal is still trading comfortably above the 3.2563 support level, however, if the bearish move extends, the aforementioned level could be the first stop. A drop below 3.2563 could drive the price towards the 3.2324 strong support barrier, which overlaps with the 50-day simple moving average as well as with the 23.6% Fibonacci retracement level of the last big up-leg with low at 2.9395 and high at 3.3175.
From the technical point of view, on the 4-hour chart, the parabolic indicator signals for bearish movement along with the momentum indicators. The RSI indicator fell below the overbought zone and is softly sloping to the downside, whilst the MACD oscillator is losing momentum as it declined below its trigger line.
