Copper futures have come under renewed selling pressure, falling back below the 2.7550 resistance level and the 20- and 40-day simple moving averages (SMA). During yesterday’s session, the 20-day SMA also acted as resistance, hence the near-term upside momentum appears to have run out of steam again as prices have been attempting and failing to close above the line in the past month.
From the technical point of view, the RSI indicator has been hovering in the negative territory, while the MACD oscillator recorded a bearish cross with the trigger line in the bearish area, indicating an extension of the short-term selling pressure.
In case of further declines in the commodity, immediate support may be found near the latest lows at the 2-month low of 2.5480, identified by the bottom on August 15. A downside break of that zone would open the way for the 2.4660 level, taken from the trough on May 2017.
However, should an upside reversal take form, price advances may stall initially near the 20- and then the 40-SMA at 2.6610 and 2.7135 respectively at the time of writing. A potential upside violation of these levels would push the price until the 2.7550 resistance hurdle.
Regarding the medium-term picture, the bearish sentiment deteriorated after the downfall towards 2.5480 and only a move above 2.7550 could now help the market to return to neutrality.
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