COPPER

Copper has nearly fully retraced the downleg from 2.2020 to 2.0845 (10/20 Oct fall), on today’s fresh extension of strong five-day rally that peaked at 2.1995.
Strongly overbought Slow Stochastic and momentum studies stuck at the midline after strong recovery rally, suggest hesitation on approach to key near-term barrier at 2.2020.
Dips were initially contained at 2.1810 (slightly below Fibo 23.6% of 2.1295/2.1995 upleg), with extension lower to be ideally contained above 2.1728 (Fibo 38.2%).
Only violation of thinning daily cloud top at 2.1673 would sideline near-term bulls for stronger correction of rally from 2.0845 low.
Res: 2.1955; 2.1995; 2.2020; 2.2055
Sup: 2.1810; 2.1728; 2.1673; 2.1575

GOLD
Spot Gold is holding below Friday’s high at $1284 with pullback being so far contained by 200SMA at $1273. Probe above strong $1280 barrier on Friday, did not result in daily close above it and long-legged Friday’s candle suggests that bulls are still hesitating, despite spiking to $1284, where falling 30SMA capped advance.
Rising wedge that was formed on recovery from $1241 low is typical bearish continuation pattern which weighs on current action. Recovery stall around $1280 zone could be anticipated according to this and wave studies which suggest completion of the fourth (corrective) wave at $1280 area.
Firm break below 200SMA will be initial bearish signal for attack at very strong support zone at $1260 (retested on Friday) and firm signal of bearish resumption on violation of the latter.
Conversely, renewed attempts higher and eventual close above $1280 pivot, would generate bullish signal for extension towards $1292 (50% retracement of $1343/$1241 descend).

Res: 1277; 1280; 1284; 1292
Sup: 1273; 1268; 1266; 1260

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