Technical forecast for Copper

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Copper keeps spiking up when we test the 6815/6765 area as stated yesterday & this happened again so there are obvious buyers at these levels. This time we made it through resistance at 6971/78 to reach the target of 7045. A break higher looks possible today for the next target at 7099/7111.

6978/70 is now support but below here we could slide to 6895. Watch for a low for the day here but use a stop on longs below 6865 as this risks a slide back to 6815/6765. 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.

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