Copper price falls further on Wednesday and probes through key 200SMA support ($2.7741), which held the action of past four days.
The metal trades within larger downtrend from $2.9933 (17 Apr high) which so far retraced 50% of $2.5420/$2.9933 rally and came under increased pressure from concerns of escalation of US/China trade conflict.
Two sides are due to meet later this week in attempts to try to find a deal and avoid strong global consequences of trade war.
However, the US already announced that it will start raising taxes on Chinese imports as from Friday that reduces chances for reaching an agreement. Firmly bearish daily studies and weekly momentum attempting to break into negative territory, add to negative scenario.
Eventual close below 200SMA after four consecutive failure, would generate bearish signal for extension of bear-leg from $2.9933 towards initial support at $2.7405 (Monday’s spike low) and $2.7144 (Fibo 61.8% of $2.5420/$2.9933 rally).
Repeated failure to close below 200SMA would keep the price within multi-day congestion and signal prolonged directionless phase.
Res: 2.8085; 2.8146; 2.8328; 2.8470
Sup: 2.7590; 2.7405; 2.7144; 2.7000
