July copper rose further on Wednesday, extending strong rally on Tuesday when the metal was up 3.75% for the day. Copper hit fresh over two-year high at $2.9040, after generating strong bullish signal on Tuesday’s close above strong resistance at 2.8215 (13 Feb former top) one-year recovery rally from $1.9360 (2016 low). Further upside is seen likely as the metal regained strong momentum on very positive sentiment, boosted rising demand from the biggest copper consumer China, as well as tight supply. Bulls could extend towards Fibo 138.2% projection at 2.9550, with psychological $3.0000 barrier also coming in sight. The price so far did not show more significant reaction on strongly overbought daily studies, but technical pullback on profit-taking after strong rally could be expected. Limited correction should ideally find footstep at 2.8250/15 zone (Fibo 38.2% of 2.6975/2.9040 upleg/former high) with extension towards 2.8000 (50% retracement) which would keep larger bulls intact. Otherwise, loss of 2.8000 handle would initial signal of deeper pullback.
Res: 2.8885; 2.9040; 2.9310; 2.9550
Sup: 2.8555; 2.8305; 2.8215; 2.8000
