Copper follow up

Since the end of June to the beginning of September, copper had a very good bullish trend while the Chinese economy was showing signs of expansion. The health of the Chinese economy is positively correlated to the price of copper due to the fact that China is one of the main copper consumers in the world. Once the price reached the 317.77 zone, it started retracing to the downside until it reached the low at the 289.37 level, where we can also find the 55 day EMA as shown on the daily chart. Copper consolidated for a couple of weeks around the 55 day EMA until it started rallying again as the Chinese fundamental data became optimistic once more, causing the price to reach the 305.00 level. Today the bullish momentum accelerated and the price of gold reached the 61.8% Fibonacci retracement at the 306.86 level. The 61.8% Fibo may act as resistance for the commodity, but if it breaks that level to the upside, then the 76.4% Fibo has a higher probability of acting as a resistance. In case the price of copper comes back down, the 55 day EMA may act as support.