Technical Analysis – Copper could move to $ 7270

Analysis

• Copper is in a large symmetrical triangle formation at $7,483-6,856. Since this triangle is also a continuation pattern, it suggests a drop unless the metal can break above the top of the triangle formation. A break below this triangle offers a downside target of $6,000-5,900 while a break back above it offers a weaker (counter-trend) target of $7,883-7,938.

Conclusion

• Presently, it can test support of the bottom of the triangle formation at $6,856 but this might not come about immediately.
• Overall we are neutral-negative in the short term. This would only change on a break back above the UTL at $7,296.
• We are neutral in the medium term and will remain so until a break of this formation. We are neutral-negative in the long term.