COPPER H4
Our expectations: The price is in a downward trend by making a retracement to diagonal resistance. This give us a good opportunity to take a short position on the main move with stop over 200SMA and 38.2% Fibonacci retracement.
SL: $5747
Alternative Scenario: If the price goes above the diagonal resistance, 38.2% Fibonacci and 200SMA and can be held there in several consecutive bars, the negative scenarios will be spoiled.
Comment: presence of a bearish swallow bar and appropriate entrance correction. CCI(50) is below 100 and CCI(14) crossed 100 and pointed downward - a negative price signal. 50SMA and 200SMA are biased - negative signal.
Fundamentals: The dangers of downturn will increase if growth in China's economy does not show stabilization. On the other hand, if the US fails to increase its infrastructure costs, it will have a negative impact on the price of the metal.
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