Copper was up nearly 1% on Thursday on recovery acceleration from 2.0324. Bear-leg from 3.2580 (16 Oct peak) found footstep at 3.0324 (Fibo 61.8% of 2.8930/3.2580 ascend) above which Morning Doji Star reversal pattern is forming.
Recovery cracked important barrier at $3.0693 (broken 55SMA) but close above here is needed to complete reversal pattern and signal further upside.
Near-term techs are regaining traction and could support for further recovery which also needs lift above thick hourly cloud top ($3.0840), however daily studies remain weak and may limit recovery along with increasing concerns about a slowdown in China’s economy. China is the world’s top consumer of the metal and weaker economy could result in lower demand which could push copper price lower.
Failure to clear 55SMA would be initial negative signal while sustained break below $3.0324 pivot would open way for further easing towards supports at $3.0110 (09 Oct trough) and psychological $3.0000 support.
Res: 3.0693; 3.0775; 3.0910; 3.1207
Sup: 3.0430; 3.0324; 3.0110; 3.0000
