Copper (LME) remains clearly below the intersection of the key 55 and 200-day averages, currently seen at $9,676/700. A weekly close below $8,570 would clear the way for a susbtantial drop towards $6,295, economists at Credit Suisse report.
Copper seen under great pressure
“We identify next supports at the recent $8,938/830 low and then the indicated $8,740/8570 monthly chart lows, which we still look to hold to maintain the long-term range. Nevertheless, we note that a break below $8,570 on a weekly closing basis would however complete a large top, with a ‘measured objective’ seen much lower at $6,295.”
“Only above the previous record highs at $10,748/845 would reinject fresh upside momentum into the market, with resistance then seen next at the psychological $11,000 level and then Fibonacci projections seen at $11,246/496.”