Copper Price Today: Drops back below 100-DMA to redirect bears to monthly low

• Copper stands on slippery ground, drops the most since June 17.
• Downbeat MACD, DMA break favor sellers, 61.8% Fibonacci retracement test immediate downside.

Copper remains on the back foot for the fourth consecutive day, down 1.02% intraday around $4.2350, amid early Tuesday. In doing so, the red metal again breaks the 100-day SMA (DMA), reversing the previous week’s breakout.

Given the downbeat MACD conditions backing the commodity sellers, copper’s decline to the month low near $4.0880 can’t be ruled out. However, a daily closing below 61.8% Fibonacci retracement of the March-May upside, surrounding $4.2400, becomes necessary.

Also acting as the downside filter is the 78.6% Fibonacci retracement level of $4.0640 and the $4.0000 threshold, not to forget March’s low of $3.9420.

Meanwhile, recovery moves not only need a daily closing beyond the 100-SMA level of $4.2625 but also require a sustained run-up beyond the latest swing high of $4.3425 to keep recall the bulls.

Following that, a 50% Fibonacci retracement level of $4.3650 and multiple lows marked since late April around $4.4300 could entertain copper bulls.

Price of copper: Daily chart

Trend: Bearish