By looking at the daily technical chart of copper we can see that earlier it was making higher highs and higher lows and it turned up after providing us bullish breakout of the key resistance level of 2.866 level and market new high of 2.986 level but at these resistance levels, bulls received supply pressure and turned down to 2.857 after making the high of 2.986 level. Well the way bear’s are reacting it seems like bulls are getting weaker and bears are getting stronger.
Well it’s just a starting once bears trade and settle below the mentioned breakout level 2.857 level then we may see further selloff or blood bath in the market till 2.750 level at least. There are high chances that we may see further selloff and clear breakout of the mentioned level as we have seen a dragonfly doji candlestick on the chart which is providing us reversal signal.
From technical prospective we can see that a rounding top price pattern is in process of formation and the way bears are responding it looks like they will complete the mentioned price pattern at 2.560 levels in near term. An intermediate term uptrend line is about to breach out and copper is surviving at on the line. Copper is trading below all the major and minor EMA lines. A shooting start followed by a bearish marabuzo candlestick is providing strength to the bears.
Daily to weekly bias remains bearish on the copper as long as 2.980 level remains intact. The 2.980 level is a key resistance level followed by 3.100 level on contrary the 2.830 level is a key support level followed by 2.700 level. Odds are in favor of bears.A bearish crossover on the MACD is also favoring the bears. The RSI indicator is below 50 with no divergence is also generating bearish signal.