Copper futures penetrated the six-month ascending trend line to the downside, falling beneath the 20- and 40-day simple moving averages (SMAs). The RSI indicator is standing in the negative zone, moving sideways, while the MACD oscillator is falling below the trigger line losing some momentum.
A successful drop below the 2.9280 support level may shift the recent neutral bias to bearish moving towards the 2.7960 barrier. Clearing this zone, the 2.6960 hurdle could come in spotlight before slipping to 2.5510.
Alternatively, a possible rebound could send the market to the 27-month high of 3.1164. More aggressive buying interest could take the commodity until the next resistance which stands near the 3.3395, registered on May 2018.
Summarizing, the medium-term bias may turn to negative if the price retreats beneath the 2.9280 barrier. However, a daily close above the multi-month peak of 3.1164 could switch the outlook back to positive.
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