Copper pares some significant losses; rebound on 2.8300 still stands.
Copper futures with delivery on May 2019 are rising, paring previous sessions’ losses below the 20- and 40-simple moving averages (SMA) in the 4-hour chart. However, the technical indicators remain in bearish territory, with the RSI sloping slightly up and the stochastic turning higher in the oversold zone. On the other hand, the MACD oscillator is still endorsing the bearish view as it is weakening below its trigger line.
In case of an upside reversal, the price could reach the 40- and then the 20-simple moving averages (SMA) currently at 2.9283 and 2.9375 respectively. Above these lines, the market may pare the previous days’ losses and meet the 2.9830 – 2.9920 resistance area.
In case the price extends the bearish move, the next immediate support is expected to come from the 23.6% Fibonacci retracement level of the up leg from 2.5396 to 2.9920 near 2.8850, which holds slightly above the 2.8800 support level. A significant penetration of this line would drive prices lower until 2.8700.
Briefly, copper prices maintain a slightly bullish bias after the rebound on 2.8300, creating higher highs and higher lows over the last month.
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