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Copper (LME) extends its consolidation/setback as it failed to remain above $10000. The metal is set to suffer further weakness towards the $9237/8873 neighborhood, the Credit Suisse analyst team reports.

Copper to alleviate downside pressure above $10120

“Copper has dropped below support at $9719/9614, which has clearly weakened the short-term outlook. We see scope for further near-term weakness to the key 50% and 61.8% retracement levels of the whole February/May upmove at $9237/8873 respectively, but we look for a fresh floor here for an eventual resumption of the core bull trend.”  

“Above $10120 is needed to ease the immediate downside bias and above the $10748 high for a resumption of the core uptrend to the psychological $11000 mark, which we would expect to cap the market, at least temporarily. A direct break can see next projection resistance at $11210, then $11440.”

“Below $9614 would indicate the market is moving into a longer-term ranging environment, before the core bull trend eventually resumes again, with support seen next at the March low at $8570.”