Copper traded lower as per expectation and reach to the support zone. Now copper is trading around 6913 of lme and as we can see on charts, copper provided a false breakout below the lower tradeline of the ascending channel. However it was able to bounce in over night electrinic trading.
The bouncing area was well supported by the 61.8% feb correction of the last bull wave as well as representing a parallel support from mid june 2014. RSI recovering on day charts while on 4h overcoming 50 mark. On fundamental side , continue improving data from US might start supporting commodities as well as in this week fed meeting is pending and expecting interest rates to keep on life time low for some more time.
Based on above studies, copper has major probability of a reversal and it may reach the levels 6970-7058 in coming trading session.
Disclclaimer: The above view is based on technical studies and do not represent our buy-sell recommendation For recommendations contact us.
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