As can be seen from the chart, in its previous move up,copper got stretched till $3.83, ie junction of the 78.6% retracement of the previous fall (from $3.989 to $3.238) and the 20-monthly moving average. From there, the red metal had fallen below the 40-weekly exponential moving average and the 20-weekly moving average (WMA). However, the bulls rushed in to provide support to the red metal. Overall, the copper seems to be forming a triangle whose last leg on the upside is in formation. Thus, sell on rise will be the strategy for copper. The reversal can be kept at $3.84. The targets on the downside
are $3.45 and $3.30.
Tags
Copper