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  • Copper bulls take a breather around three-week-old horizontal resistance.
  • The receding bullish bias of MACD also suggests pullback.
  • 100-SMA restricts immediate downside, bulls can aim for 78.2% Fibonacci retracement on further upside.

Copper fades upside momentum despite posting 0.12% intraday gains around $4.68 on Comex ahead of Tuesday’s European session trading.

In doing so, the red metal justifies recently downbeat MACD and repeated failures to cross a horizontal line from May 12.

Hence, the quote is likely to witness a pullback towards the 100-SMA level of $4.64, a break of which could extend the drop towards $4.60 and the $4.55 supports.

However, the industrial metal bears won’t be convinced unless witnessing sustained trading below 200-SMA near $4.51.

On the contrary, a sustained upside break of the $4.70 immediate resistance line will propel the upward trajectory towards 78.2% Fibonacci retracement of May’s downside, around $4.80.

Other than the technical analysis, soft prints of China PMIs and a crackdown on commodities also test the copper buyers of late.

Price of copper: Four-hour chart

Trend: Pullback expected