Copper Nearing Key Support Once More

In our last Copper Update (16thFeb) Copper was in the process of testing long term resistance. The market has drifted back since then, with key support coming under scrutiny.

• WEEKLY CHART -CONTINUATION The upmove earlier found resistance from the bull channel top projection. Our higher targets remain out of reach for now. Note first support has come from a 38.2% pullback at 3.9000 on the continuation chart. Lower support is offered by the 3.6295 Apr-10 high and channel base.
• DAILY CHART –Jul-11: Initial support in Mar came ahead of the Nov-10 high. More key, though, are the projected channel base around 4.0000 and slightly lower 3.9500 38.2% pullback level. Temporary support from this area would not surprise. In the Commodity Specialist Guide we already hold a bear stance, and a break through these supports in due course would provide a boost to the bear view, and call for lower targets.

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