Resistance becomes support on copper

In technical analysis we can see on many occasions that a support level may become resistance or resistance may become support. That happens mostly because of psychological reasons. On the daily chart of copper we can see that the commodity was having a good bullish trend until it reached the 317.84 level from where it bounces to the downside. On the bearish bounce from the 317.84, the level is labeled as a resistance. The price then falls to the 55 day EMA (purple line) from where it goes back up. When the price goes back to the 317.84 level, at that zone some traders open short positions believing that the level was going to act as resistance once more, but the bullish momentum was so strong that the price continued higher until it reached the 325.86 level. The short positions enter negative territory, but when the price retraces to the downside and visits the 317.84 level again, those short positions go back to breakeven and the sellers feel relieved, rushing to close those short positions before the price goes back up. That is why that zone becomes support and the price may try to bounce back up from there. However, in order for the bullish trend to be sustained, the price of copper must break above the high at the 325.86 level. In case the price keeps dropping, then its next most relevant support is at the 55 day EMA, around the 298.97 level.