Copper price bounced from five-week low at $3.1065 on Wednesday, inflated by sharp fall of US dollar that offsets negative impact from strong rise in copper inventories.
Fresh rally so far retraced the largest part of Tuesday’s strong fall (the biggest one-day loss since 05 Dec), sidelining immediate downside threats, after corrective leg from $3.3200 high was contained by 100SMA at $3.1065.
Recovery rally dented Fibo 38.2% of entire $3.3200/$3.1065 downleg and could extend further as slow stochastic is heading north after emerging from oversold territory and shoeing a plenty of space upside.
Immediate barrier lies at $3.2028 (converged 10/30 SMA’s), followed by $3.2293 (20SMA).
Break here and through $3.2384 (Fibo 61.8% of $3.3200/$3.1065) would generate strong bullish signal and neutralize near-term bears.
Res: 3.2028; 3.2132; 3.2293; 3.2384
Sup: 3.1881; 3.1569; 3.1416; 3.1065
