Technical forecast for Copper

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Copper broke Friday’s low of 6875 but recovered quickly from 6775/65. We keep spiking up when we test the 6815/6765 area so there are obvious buyers at these levels. However it looks increasingly likely they will get run over by the down trend sooner or later. A break lower today would target 6710/00 then 2011 yearly lows at 6635. Below here we have strong 50% Fibonacci support from the start of the rally in 2009. This could mark the low for the 3 month sell off.

Resistance today at 6895 then at 6971/78 above. Try shorts here with stops above 7002 as we look for a top today. A break higher however can target 7045 then 7099/7111.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More