Copper future contract for December surged to three-year high at $3.2300 on Monday, boosted by strong Chinese data which signal robust growth of metal’s world top user.
Copper price was up 2.3% from Monday’s opening and strong bullish acceleration broke above previous high of 05 Sep at $3.1770. Today’s close above here will be strong bullish signal for extension towards Fibonacci projections at $2.440 (123.6%) and $3.2855 (138.2%) en-route towards $3.2930 (July 2014 peak).
Meanwhile, bulls may take a breather on overbought daily RSI / slow stochastic. Corrective dips should be ideally contained above previous high at $3.1770, however, deeper dips cannot be ruled out.
Next support lies at $3.1505 (Fibo 23.6% of $2.8930/$3.2300 upleg) ahead of last Friday / today’s lows at $3.1111 and Fibo 38.2% at $3.1013, which are expected to contain deeper dips.
Res: 3.2300, 3.2440, 3.2855, 3.2930
Sup: 3.2000, 3.1770, 3.1505, 3.1111
