Strategists at Credit Suisse have maintained a bullish view for copper since September with the market now at the initial upside objective of the 2017 and 2018 highs at $7254/7348. A pause may be seen here, but the core outlook stays bullish for a break in due course and a move to and eventually above $7950.
See: Copper gets ever closer to the 2018 high at 7348.00 – Commerzbank
Key quotes
“Copper (LME) maintains its bullish ‘flag’ continuation pattern, with the rally now at our first upside objective and resistance test at $7254/7348 – the highs of 2017 and 2018 and 50% Fibonacci retracement of the whole 2011/16 downmove. Whilst a pause here should be allowed for, our core outlook stays bullish and we look for a clear and sustained move above $7348 in due course to mark the completion of an even larger base to further reinforce our bullish outlook, with resistance next at the 61.8% retracement at $7947 and eventually we think $8895.”
“Support for a setback is seen at $7020 initially, with $6670 now ideally holding any deeper pullback to keep the broader risk higher.”
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