Copper has the high of 2018 at $7254 in its sights – Credit Suisse

Copper (LME) maintains its previous highlighted bull “flag”, as the $6257 is holding, and is now on the cusp of breaking to new highs. A break below $6257 would imply more range trading, according to strategists at Credit Suisse.

Key quotes

“Copper maintains its bullish ‘flag’ continuation pattern and is trying to break to new highs. Whilst support at $6257 holds the immediate outlook remains bullish for strength back to $7034, then $7254/7348 - the high of 2018 and 50% retracement of the 2011/2016 collapse.” 

“Below $6257 would warn of further range trading and a test of price and ‘neckline’ support at $6281/26, but only below here would negate the ‘flag’ and instead set a top to turn the risk lower.”

“The bearish weekly RSI divergent momentum picture is a concern though.”