Technical Outlook COPPER 27.07.2017

Technical Outlook COPPER 27.07.2017

Copper price heads higher after shallow pullback

COPPER

Copper contract for July delivery maintains firm tone and heads higher after Wednesday’s upside rejection at $2.9040 (2-year high) and subsequent shallow pullback on profit taking.
Strong bullish sentiment supports for further advance, as the price eyes targets at 2.9434 (FE 123.6% of current wave C from 2.4720) and 2.9550 (Fibo 138.2% projection).
Conditions on daily chart remain strongly overbought but indicators are so far not showing signs of reversal. However, pullback on profit-taking of steep in past few sessions could be anticipated in the near-term.
Thick hourly cloud (currently spanned between 2.8611 and 2.8105) continues to underpin near-term action and should contain corrective dips.

Res: 2.9040; 2.9310; 2.9434; 2.9550
Sup: 2.8790; 2.8611; 2.8435; 2.8305