Since the beginning of the year the commodity gained more than 23.5% but last week fell over of 2.0% and is in a bullish phase since early October.
Last week, copper initially tried to rise but found enough selling pressure near the 2017 high to erase all its early gains and closed in the red, near the low of the week, in addition the commodity managed close below the previous week low, which suggests a strong bearish momentum.
Stochastic is showing is setting lower highs while price is making higher highs, signs of a potential bearish divergence.
After copper made a new high for 2017 began a downward correction and the question that presents is how deep will the correction be and can this correction convert into a trend reversal.
Expecting a downward move to a Fibonacci retracement at 295.84 (scenario 1) or even down to other Fibonacci retracement at 286.55 (scenario 2) on a break below the previous week low at 307.25 however a bounce from the Fibonacci retracement at 395.84 can trigger an upward move to 2017 high at 325.90 (scenario 3).