Copper was trading in very tight range form almost last 1 month. Our last report was posted on 01.10.2013 and after that we witness a tight range.
Now copper is trading around $3.2450 and as we can see on charts , copper is not falling below the support tradeline of the ascending channel which turn our focus on the next descending channel which maintaining a very strong resistance around $3.28. At the same time a day close and continue move below the 61.8% feb area also support the negativity in coming trading sessions. However some parallel support may delay the deeper fall.
On the fundamental side, rising dollar, the high chance of profit booking in equity markets and decreasing demand from China may reduce the demand.
Based on above studies, we will prefer to sell policeman for some downside targets around $3.20 and $3.18. Only a day close above $3.28 will force us to reanalyze the charts.