The Commodity Specialist view – We had recently been looking at potential resistance in Copper, from a long term 76.4% level. This was forthcoming and the subsequent slip back has now reached interesting technical support, from which a temporary rebound looks probable.
- WEEKLY CHART – CONTINUATION:
The 76.4% level came under pressure, but successfully repelled the bull advance. At the time, a negative RSI divergence suggested bull fatigue.
The pullback has now reached the 2.7200 38.2% retracement, a logical place to seek a bounce.
However, this is assumed to be temporary. - DAILY CHART – JUL-10:
On this chart the bear case has been strengthened by the breach of the bull channel base projection.
The Feb 2.8525 low has now been eroded, but a positive RSI divergence supports expectations of a rebound off the 38.2% area on the Weekly chart.
Sometimes these initial corrective rebounds can be quite deep but, initially, note potential resistance around the 3.2675 10-May high.
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