Copper remains solidly above the $5675 200-day average and is picking up further momentum. Therefore, the Credit Suisse analyst team expects the metal to extend the current strength towards the $6609 April 2019 high.
Key quotes
“Copper (LME) has established itself above its 200-day average at $5675, and has also broken above price/gap/50% retracement resistance at $5928, confirming the recent upturn in momentum. As a consequence, we expect the recovery to extend further with next resistance seen at the January 2020 high at $6343, before $6462 and then the April 2019 high at $6609.”
“An overshoot to the ‘neckline’ to the 2017/2018 top at $6710/17 is seen as possible, but we would look for this to cap the recovery.”
“Support can be identified at $5666 and then more distant $5246 which we expect to hold.”
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