Copper is at risk to a break below the 200-DMA at $8740 – Credit Suisse

Copper (LME) is undergoing a fresh and concerted test of key support from its rising 200-day average, a close below which would increase the risk for an important “head and shoulders” top pattern. This would only be confirmed below $8740 though, analysts at Credit Suisse report.

Copper to complete a “head and shoulders” top below $8740

“Copper has been thrown back below its 63-day average and weekly RSI momentum continues to deteriorate further after confirming a top.” 

“Pivotal stays seen ‘neckline’ and 200-day average support at $9069/8740, below which would see a ‘head and shoulders’ top complete to warn of a more significant turn lower, with support seen next at the March low at $8570.”

“Above $9756/975 remains needed to ease the threat of a top for a move back to the $10748 high, then the psychological $11000 mark.”