- Copper drops for the first time in five days.
- 50-DMA, monthly resistance line constitute a tough nut to crack for the bulls.
- Lows marked during July, June can entertain bears while buyers have a bumpy road to return.
Copper prices on Comex print 0.84% intraday losses while staying pressured near the day’s low of $4.2265 ahead of Thursday’s European session.
The red metal stepped back from 200-DMA the previous day. The bearish impulse gains support from a downward sloping trend line from July 27 to snap a four-day uptrend.
It’s worth noting that downbeat MACD signals also challenge the commodity buyers, suggesting further weakness in copper prices.
In doing so, July’s bottom surrounding $4.1665 and June’s low of $4.0880 gain the bears’ attention.
However, the metal’s weakness past $4.0880 will be challenged by the $4.0000 threshold and monthly low of $3.9615.
On the contrary, a daily closing beyond $4.3055 will aim for the mid-month peak close to $4.4310. Though, tops marked during July and June, respectively around $4.6275 and $4.7070, will challenge the copper bulls afterward.
In a case where the industrial metal jumps past $4.7070, the yearly top marked in May around $4.0880 will be in focus.
Price of copper: Daily chart
Trend: Further weakness expected