Copper was sharply lower on Tuesday after rally on Monday was repeatedly capped by bear-trendline which marks the upper boundary of the triangle, formed on daily chart. Fresh weakness, triggered by stronger dollar, offset positive signal on Monday’s bullish engulfing pattern and generates bearish signal on probe below the lower boundary of triangle. Close below triangle is needed to confirm and expose immediate support at $3.0915 (daily Kijun-sen), break of which would open way for retest of key near-term support at $3.0725 (27 Oct low).
Overall picture remains bullish but the metal may extend pullback from fresh multi-year high at $3.2580, before broader bulls resume.
Res: 3.1176; 3.1422; 3.1504; 3.1645
Sup: 3.1015; 3.0915; 3.0725; 3.0660
