Copper price eases from new seven-month high at $2.9235, posted on Wednesday, as dollar firmed after Fed minutes on revived hopes of possible rate hike in 2019.
Profit taking after steep four-day rally and overbought daily studies could spark corrective action after bulls stalled on approach to important barriers at $2.9280/2.9355 (Fibo 50% of $3.3140/2.5420 fall/weekly cloud top.
Initial support at $2.8827 (Fibo 23.6% of $2.7505/2.9235) stays intact for now, with extended dips to be ideally contained above $2.8574 (Fibo 38.2%) to keep larger bulls intact.
Bullish stance is supported by daily MA’s in full bullish setup with today’s formation of 20/200SMA golden cross and strong bullish momentum, adding to positive sentiment.
Dips towards $2.8574 Fibo support are seen as positioning for fresh advance, while break here would weaken near-term structure and risk test of pivotal 10SMA ($2.8251).
Res: 2.9175, 2.9235, 2.9280, 2.9355
Sup: 2.8827, 2.8574, 2.8370, 2.8251
