Copper future contract for December delivery is firmer on Friday and probed above $3.2000 barrier after three-day pullback was contained by rising Tenkan-sen at $3.1375.
Reversal pattern is forming on daily chart after Thursday’s action ended in long-legged Doji, signaling that pullback on profit-taking is running out of steam, with fresh strength on Friday completing the pattern.
Recovery rally so far retraced over 50% of pullback from fresh three-year high at $3.2580 to $3.1375 and needs close above minimum $3.1835 (Fibo 38.2% of $3.2580/$3.1375) to generate stronger bullish signal.
Broader bulls remain intact after correction and favor fresh upside, as metal is on track for the third consecutive strong weekly rise.
Rising daily Tenkan-sen continues to underpin (currently at $3.1420), with alternative scenario requiring break here and $3.1375 correction low, to risk deeper correction.
Res: 3.2090, 3.2120, 3.2415, 3.2580
Sup: 3.1625, 3.1420, 3.1375, 3.1186
