Copper targets the 7000.00 level and above – Commerzbank

Copper (LME) trades at levels last seen in June 2018 as  has exceeded the 78.6% Fibonacci retracement at 6710.92 and targets the 7000.00 mark and above, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“Copper’s advance has recently taken it above the 78.6% Fibonacci retracement at 6710.92 which means that the psychological 7000.00 level is being eyed. Further up the December 2017 and June 2018 highs at 7312.50/7348.00 are also back in the picture.” 

“We will retain our immediately bullish view while the contract continues to trade above the 6465.00 August 21 low. Below it the seven month support line can be seen at 6459.28, the 55-day moving average at 6320.19 and the August low at 6226.00.” 

“Only an unexpected drop through the 6226.00 low would change our forecast to a bearish one and would confirm a top formation. This scenario is currently not on the cards.”