Copper future contract for December delivery pulled back from fresh over three-year high at $3.2580 on Tuesday, as traders took profit after Monday’s rally when copper advanced by 4% in the biggest one-day rally since Feb 10.
Fresh easing was also triggered by stronger dollar, with deeper dips signaled by daily RSI reversing from overbought territory and slow stochastic turning south, deeply in overbought zone.
Pullback is pressuring psychological $3.2000 support (also Fibo 38.2% of Monday’s $3.1110/$3.2580 rally), which marks the first pivot ahead of previous high at $3.1770 (posted on Sep 5).
Correction could extend further if $3.1770 support gives way and could stretch to $3.11/12 zone (yesterday’s low / Fibo 38.2% of $2.8930/$3.2580, 22 Sep / 16 Oct upleg).
Overall structure remains bullish and correction is expected to show the health of larger uptrend from Jan 2016 low at $1.9380.
Res: 3.2415, 3.2580, 3.2855, 3.2930
Sup: 3.2000, 3.1770, 3.1672, 3.1186
