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COPPER TECHS: (Z4) Short-Term Gains Considered Corrective

COPPER TECHS
  • RES 4: $511.20 - High May 20 and key medium-term resistance  
  • RES 3: $488.95 - High May 29 
  • RES 2: $464.60 - High Jul 5 and a key short-term resistance 
  • RES 1: $428.58  - 50-day EMA    
  • PRICE: $422.30 @ 14:19 BST Aug 19
  • SUP 1: $396.45 - Low Aug 7 
  • SUP 2: $387.40 - Low Mar 1
  • SUP 3: $374.65 - Low Feb 9 and key support 
  • SUP 4: $370.42 - 1.236 proj of the May 20 - Jun 27 - Jul 5 price swing    

A bear cycle in Copper futures remains intact and the recent extension down reinforces current conditions. Price traded to a fresh cycle low on Aug 7. The contract has breached $406.88, 76.4% of the Feb 9 - May 20 bull cycle. The clear break of this price point sets the scene for weakness towards $374.65, the Feb 9 low. Initial firm resistance is $428.58 the 50-day EMA. Recent gains are considered corrective.

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