Copper – Awaiting Reaction at 76.4% Resistance
14 January 2010
The Commodity Specialist view -
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WEEKLY CHART - CONTINUATION:
A long term bear channel top projection that we had been looking at did not, in the end, work as resistance.
However, not far above this lies the 76.4% recovery level which could make bulls think twice.
We are awaiting reaction around here
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WEEKLY CHART - MAR-10:
On the Weekly chart of the front month we note that the first interesting Fibo retracement of 23.6% lies close to the Aug-09 high, i.e. the 300 area should prove key in determining future performance.
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DAILY CHART - MAR-10:
In the Commodity Specialist Guide we had been looking at a Fibo projection just below 350, which the market has so far been unable to hold above.
On this chart the first hint of momentum loss comes from a break/close below the small bull channel base projection around 330 and the 3.2750 04-Dec high.
The bear case would strengthen on a break below the 38.2% pullback level, with subsequent rallies then to be viewed as temporary ahead of further bear activity.
Below here note that the key 300 area from the Weekly chart coincides nicely with the 61.8% level here, reinforcing its importance.
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Philip Allwright
Mark Sturdy
Seven Days Ahead
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