Copper rallies further on Friday and extends previous day’s 1.6% rally which generated strong bullish signal on break and close above daily cloud (cloud top lies at $3.1033, reinforced by daily Kijun-sen).
Today’s fresh extension higher cracked pivotal barrier at $3.1245 (Fibo 61.8% of $3.1935/$3.0130 bear-leg), looking for further bullish signal on daily close above.
Daily MA’s returned to bullish setup and support further advance, along with north-heading 14-d momentum which broke into positive territory.
Weaker dollar and falling copper inventories, as well as signs of strong demand from metal’s top consumer China, are also supportive factors.
Copper is on track for strong bullish weekly close which could further underpin rally.
Lift above $1245 Fibo barrier would open 100SMA ($3.1433) and Fibo 76.4% barrier at $3.1509.
Broken top of thick daily cloud marks solid support which should ideally contain dips.
Res: 3.1250, 3.1433, 3.1509, 3.1660
Sup: 3.1033, 3.0909, 3.0865, 3.0772
