(Kitco News) - Copper has continued to fall today with the futures market down 3.19% in the European and Asian sessions. The market broke the triangle pattern to the downside and is now heading towards the 0.382% Fibonacci support area. On the volume profile indicator, the price is now hitting a low volume node which can act as support. The next distribution peak stands at $3.55/lb and it could be sticky.
The next major support on the way down is the green horizontal line at $3.30/lb. Although, the price has to take out the Fib support zone first. Where the price is right now there was some resistance in 2006 so this could be an area of support but we would only get confirmation of that in the next couple of sessions.
From a fundamental perspective, the lockdowns in China have had a massive influence. The property market slowdown has been an issue but the nation is slowly exiting lockdowns as we speak. If there is to be some support here there would need to be some confirmation of a turnaround before the longs kick in.