Copper rallied strongly on Monday and broke above four-day congestion, signaling that corrective phase from new high at $3.3200 may be over.
The metal received fresh support from weakening dollar which came under increased pressure on Monday and spiked to $3.2900 so far, near Fibo 76.4% of $3.3200/$3.2065 pullback. Today’s close above cracked $3.2766 barrier (Fibo 61.8%) is needed to confirm reversal.
Bullish daily techs returned to full bullish setup and started gaining fresh bullish momentum, signaling further recovery for full retracement of corrective leg from $3.3200 peak. Broken thick 4-hr cloud ($3.2695/$3.2481) marks strong support zone, reinforced by 10SMA at $3.2425, which is expected to contain dips.
Res: 3.2900, 3.2932, 3.2970, 3.3085
Sup: 3.2695, 3.2525, 3.2481, 3.2425
