Copper (19.8.14) traded lower as per expectation & reach to the support zone.
Now copper is trading around 6913 of lme & as we can see on charts, copper provided a false breakout below the lower tradeline of the ascending channel.However it was able to bounce in over night electrinic trading. The bouncing area was well supported by the 61.8% feb correction of the last bull wave as well as representing a parallel support from mid june 2014. RSI recovering on day charts while on 4h overcoming 50 mark.
On fundamental side , continue improving data from US might start supporting commodities as well as in this week fed meeting is pending & expecting interest rates to keep on life time low for some more time.
Based on above studies, copper has major probability of reversal & reach to possible levels 6970-7058 in coming trading session.
Note – above view is based on technical studies & do not represent our buy-sell recommendation
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