- The rally in copper (US$) is starting to show signs of fatigue
- After 5 consecutive months of rally, there seems to be a strong tussle going on between bulls and bears this month, especially over the last few sessions
- With risk assets coming under stress, copper has started showing signs of cracks
- The metal has broken the trend line support drawn from the March lows.
- Price is now testing a minor support of 2.92, while the daily RSI is testing the bull market support zone of 40
- Sustainability below 2.92 can trigger a short-term correction in copper prices
- Intermarket actions are also negative at the moment, with equities slumping and the dollar strengthening, both of which are strong headwinds for copper prices
- On the domestic front, copper has reversed right from the key 161.8% fibonacci retracement drawn from 459.40 to 335.95
- The appearance of a bearish engulfing candle earlier this week indicates that as long as price does not cross above its high (539.80), it will be vulnerable for a short-term correction.
