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Copper (LME) is consolidating but this is seen as a healthy development in the core bull trend, according to strategists at Credit Suisse.

Key quotes

“Copper (LME) has peaked near-term and with a bearish weekly RSI divergence in place, we continue to look for a consolidation/corrective phase to emerge. This though will be seen as a healthy and overdue phase following the impressive rally of the past year.”  

“Support for a pullback seen at $8570, then the 63-day average, currently at $8447/40, which we look to try and hold. Below can see a deeper pullback to $8238, with our bias remains for this to prove a solid floor.”  

“Post a consolidation we will then look for a resumption of the uptrend back to and then above the current cycle high at $9617. We would then see resistance next at the psychological $10000 resistance level and eventually the key high of 2011 at $10190.”