The Commodity Specialist view – Following a 38.2% pullback in Copper earlier this year subsequent recovery breached important resistance which opens the way for a return to the old 2008 peak. Shorter term, though, the signs are building that a correction is due.
- COPPER – WEEKLY CONTINUATION CHART:
After the former 38.2% pullback level provided strong support the recovery finally breached former 76.4% resistance.
S/term dips are expected to be temporary.
Should weakness unfold now note the current 23.6% retracement lies at 3.2500 (not shown). - COPPER – DAILY CHART DEC-10:
S/term resistance has come from near a bull channel top, but a pullback phase will not look likely until price falls through the channel base, around 3.6000 currently.
In fact, note that the daily RSI signals s/term bear fatigue via a negative divergence, putting us on the alert for such a correction.
Beyond immediate support from the Apr 3.6690 high, and then lower 3.4305 early Aug high, we would focus on the 3.2000 25-Aug low for support, the starting point for the current upleg, and near to the 23.6% level on the Weekly chart.
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