Since the beginning of the year, the commodity lost 3.5% and last week fell over 1.0% but remains in a bullish phase since mid-December 2017.
Last week, copper tried to rise but found enough selling pressure to erase its initial rally and closed near the low of the week, in addition the commodity managed to close below the previous week low, which suggests a strong bearish momentum.
Stochastic is showing a strong bearish momentum and crossed below the overbought zone.
After making 2017 high at 332.10, copper began a downward correction for three weeks in a row now. Will the 10-week moving average provide a good dynamic support or will the commodity set the stage for a deeper correction?
Expecting an upward move to 2017 high at 332.10 on a bounce from the 10-week moving average at 317.75 (scenario 1) however a break below the 10-week moving average at 317.75 may trigger another profit taking down to a Fibonacci retracement at 299.67 (scenario 2).