Copper: 21.02.2017
Timeframe: H4
Mid-term uptrend that moves above a strong diagonal resistance that has been unsuccessfully tested several times through the last few months. Correction to SMA50, near 38.2 Fibonacci level, ended with pin bar just at the level of ongoing support diagonal. That is a test with a tendency for long-term rising.
Price Action: pin bar on SMA50 and diagonal support
Technical indicators:
SMA50 / 200 - positive formation (50 over 200) and the price is above 50 - signal for long.
CCI 14/50 - 50 is in positive zone, 14 crosses above 0 - signal for rising.
SL: 5850
Alternative scenario: If the price goes back below the diagonal then we can expect a short-term downtrend.
Foundation: Closing the two biggest mines in the world for produce of the red metal and delays in deliveries to China are prerequisites for price increase in a long term.
Jr_Trader_Ivan_Ivanov
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