Copper futures were unable to close below the 2.54 hurdle, and the bulls logged gains, sending the metal back into the neutral sideways market that has lasted for three months.
The momentum indicators suggest the short-term negative trend is weakening. The MACD has started to turn up in the negative area for a cross above its trigger line, while the ADX shows a weakening of the bearish trend in place. The simple moving averages (SMAs) although bearish have flattened in the short-term, suggesting that the sideways market may stick around for now.
If the bulls take control and the price moves above the 50-day SMA, then the 2.7135 resistance could be tested before some pressure from the 100-day SMA at 2.7415, and ahead of the 200-day SMA lying at 2.7550. If the bulls continue and the 2.800 psychological level is surpassed, the highs of 2.9195 and 2.9915 could come into play.
To the downside, if the bears manage to seize the baton and a run downwards breaching the 2.540 and recently formed low of 2.5280, the 2.3680 support level which is the 138.2% Fibo extension of the up leg from 2.5395 to 2.9915, could unravel.
Summarizing, a break above 2.80 or below 2.5280 would reveal the directional bias.
