Copper contract for September delivery is holding firm tone on Friday but stays below fresh highs at 2.9780 and 2.9810, posted on Wed/Thu (the highest traded since Nov 2014.
Strong bullish sentiment keeps meta well supported as expectations that reforms in China’s metal industry will curb supply against a background of strong demand as China is world’s top consumer of copper.
Toppish daily studies suggest that price may extend consolidation before resuming its steep uptrend, as strong fundaments and weaker dollar continue to underpin the metal’s price.
Break above former top at 2.9540 (peak of 05 May 2015), requires weekly close above for confirmation, with psychological 3.0000 barrier coming in focus.
Broken Tenkan-sen offers initial support at 2.9257 and guarding higher base at 2.8745.
Res: 2.9575, 2.9780, 2.9810, 3.0000
Sup: 2.9257, 2.9000, 2.8745, 2.8590
