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Copper (LME) formed a top at 6877.50 and is set to slide further towards the August low at 6226.00, according to the Technical Analysis Research Team at Commerzbank.

Key quotes

“LME Copper’s advance has recently taken it to a two and a quarter year high at 6877.50 but then suddenly dropped to the 55-day moving average at 6557.88 as expected.”

“A slip below the current September low at 6449.00 would target the August low at 6226.00. En route lies the mid-July low at 6305.50. Only a failure at 6226.00 on a daily chart closing basis would confirm a significant top formation, though, with the 200-day moving average at 5876.09 then being in the frame.”

“Were a rise and daily chart close above the recent high at 6877.50 to unexpectedly be seen, however, we would turn bullish again and would continue to target the psychological 7000.00 level. Further up the December 2017 and June 2018 highs remain to be seen at 7312.50/7348.00.”