Copper (LME) is undergoing a fresh and concerted test of key support from its rising 200-day average, a close below which would increase the risk for an important “head and shoulders” top pattern. This would only be confirmed below 8740 though, analysts at Credit Suisse report. Copper has been thrown back below its 63-day average and weekly RSI momentum continues to deteriorate further after confirming a top. Over the last 15 years, copper has risen 11 times between Jan 31 and Mar 02. The average rise has been 4.71% and the largest gain was in 2021 with a 19.12% rise. The largest fall was in 2013 with a -6.18% loss. Copper is often given the nickname Dr Copper since it gives a good indication of overall global health. Demand for copper is expected to grow medium term due to electrical vehicle demand. Take a look below at one of the best times of the year to buy copper from a seasonal perspective. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The latest crisis surrounding Evergrande resulted in some contagious selling of risk assets to start the week with commodities sliding on the news. One commodity that has been in focus for a few weeks now has been copper. Pivotal stays seen ‘neckline’ and 200-day average support at $9069 - 8740, below which would see a ‘head and shoulders’ top complete to warn of a more significant turn lower, with support seen next at the March low at 8570. Above $9756/975 remains needed to ease the threat of a top for a move back to the 10748 high, then the psychological 11000 mark. 

COPPER

Sep 25 2021