Copper Back at Pivotal Support Area

The May/Jul recovery in Copper prices, from earlier Fibonacci support, stopped short of the Feb high and, now, the recent quick reversal has seen the market return to key supports on the daily and longer term charts.

• WEEKLY CHART -CONTINUATION Earlier support came from around a 38.2% pullback level. The market has now put fresh pressure on this, which now coincides with the bull channel base. A break below this would mean a more prolonged correction was underway.
• DAILY CHART –Sep-11: The recent fall has retested the earlier 76.4% support, finding further s/term underpinning from a channel base projection (corresponding support on the Dec-11 chart lies at 3.8000). A break below this would call for lower targets, besides those coming from the Weekly chart. Bears are already encouraged and look for further negative confirmation now.

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