The Commodity Specialist view – In early 2010 the recovery in Copper (COMEX) was halted by a long term 76.4% retracement level, although the ensuing pullback proved short-lived. More recently this resistance has been tested again, and again the reaction has been negative.

  • WEEKLY CHART – CONTINUATION:
    Resistance around the 76.4% level remains strong, recently prompting another pullback.
    At this stage note the 3.0675 23.6% pullback level as possible support – a clear break below would imply any subsequent bounce was more likely to be temporary, ahead of further bear activity.
    Also note the negative RSI divergence which implies medium term bull fatigue.
  • DAILY CHART – JUL-10:
    In the Commodity Specialist Guide we had noted potential s/term support from a shorter term 76.4% level (near to 23.6% on the Weekly chart) – here we also point out a bull channel base projection at 3.0000 currently.
    Some support is likely around here. A later break below would imply further loss of positive momentum, with medium term bears winning favour.
    Confirmation would come from a break of the Feb 2.85525 low.

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