Since the beginning of the year the commodity gained more than 17.5% but last week remained flat with a minor gain of 0.31% and made a phase change, shifting from a bullish to a warning phase.
Last week, copper went back and forward with a narrow range plus without any clear direction and closed in the middle of the weekly range, in addition the commodity managed close within the previous week range, which suggests being clearly neutral, neither side is showing control.
The stochastic is showing a strong bearish momentum although is still above the 50 mid line.
Copper pushed thru a weekly resistance at 303.90 that was the 2015 high but did not have enough momentum to continue further and began a pullback. Now the question relies on how deep will the correction be?
Expecting a downward move to a Fibonacci retracement at 282.50 on a break below the previous week low at 289.35 (scenario 1) however a bounce from the weekly resistance at 303.90 can also trigger a downward move to a Fibonacci retracement at 290.83 (scenario 2).