According to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, copper (LME) has resumed its ascent, but it must rise over 10120 to confirm a longer-term uptrend.
“Copper’s decline has carried it to a June low of 9011, close to the March to early April lows of 8800/8570, before gradually reversing. This has brought it dangerously near to the three-month resistance line at 9727.50, which, along with the 55-day moving average at 9815.40 and the June 11 high at 10120, must be broken for the long-term uptrend to resume. If that’s the case, the May high of 10747.50 would be reintroduced.”
“Minor support may be found around the late June low of 9236, and more support can be found at the June low of 9011, as well as in the 8800/8570 zone.”
“Only an unforeseen failure at the 8800/8570 level would lead to a focus on the 200-day moving average and the January high around 8390/8238.”/n
