Copper contract for September delivery hit new nearly three-year high at $3.0855, on fresh bullish acceleration on Monday, which extends broader uptrend after rally paused on Friday, when action was shaped in Doji candle.
Copper continues trend higher, as strongly bullish technicals continue to underpin, however, bullish fundamentals dominate in the whole picture. The metal was boosted by weaker dollar and 8.2% fall in copper stocks, report released last week showed. In addition, strong demand from China, metal’s top consumer, continues to inflate copper price.
The price is riding on extended wave C from 2.6300 (10 July trough), which eyes immediate target at 3.0973 (FE261.8%), with next strong barrier at 3.1114 (Fibo 61.8% retracement of larger 3.8380/1.9360, Sep 09/Jan 16 descend), also coming in focus.
No signals of easing for now, as daily indicators continue to head north, deeply in overbought zone, but some corrective action should be anticipated in coming days.
Res: 3.0855; 3.0973; 3.1114; 3.1655
Sup: 3.0606; 3.0350; 3.0165; 3.0000
