Copper: Corrective recovery to be extended – Credit Suisse

Copper continues to edge higher but, with a large top in place, strength is seen as corrective ahead of the core trend eventually turning lower again, strategists at Credit Suisse apprise.

Key quotes

“Copper (LME) is now trying to break key retracement resistance at $5357/70, but with more important resistance still seen at $5518/90, the 2020 February low and previous range breakout point.”

“With a major top still in place our bias remains for this to cap for an eventual resumption of the broader downtrend, with a move below distant $4953 needed to now mark a near-term top for a fall back to $4371/18.”

“A close above the 200-day average at 5674 would indicate the top has been negated, making a range bound market a more likely scenario.”