Copper: Potential top and bearish continuation – Credit Suisse

Copper (LME) is testing its key medium-term support at the 2019 low at $5518/5433, as strategists at Credit Suisse notes. 

Key quotes 

“Copper (LME) is testing its key medium-term support at the 2019 low at $5518/5433 and with the market remaining below key moving averages, a potential top and bearish continuation pattern look increasingly likely to be confirmed if the market can sustain a break below $5518/5475, which would suggest aggressive further weakness.” 

“The next support would then just initially be seen at $5420 and then likely even lower at $5131, the March 2016 high.”

“Key resistance remains at $5850/926, above which would suggest the range bottom has held. However, only above a distant $6343/6435 would turn the medium-term risks higher again by completing a ‘double bottom’ base, which is not our base case.”