Copper - Dragon Fly Doji, holds above 100-DMA

Comex Copper’s sharp recovery on Monday from the Intraday low of $2.5547/pound to 2.6245 (close) led to a Dragon Fly Doji candlestick formation on the daily chart, which suggests indecision and a potential turning point

At the time of writing, Copper traded just above the 100-DMA of $2.6062/pound. The upward sloping 100-DMA support has been put to test at least four times this month. However, the dips below the moving average proved to be short lived as seen on Monday.

Prices hit a 2-1/2 week low on Monday after Trump’s failure to repeal and replace Obamacare triggered a wave of selling risk assets- equities, US dollar and industrial metals.

Copper Technical Levels

A break below 100-DMA of $2.6062 would expose $2.5746 (Mar 22 low), under which the losses could be extended to $2.5429 (Mar 9 low). On the other hand, a break above $2.6432 (descending trend line resistance) would open doors for $2.6853 (Mar 20 high) and $2.75 (Mar 1 high).