Copper to resume the uptrend towards the $9617 high after taking a breather – Credit Suisse

Copper (LME) has started to consolidate, but this is seen as a healthy development in the core bull trend which is set to resume back to the current $9617, per Credit Suisse.

Key quotes

“Copper strength looks to have peaked near-term and with a bearish weekly RSI divergence in place we continue to look for a consolidation/corrective phase to emerge. This though will be seen as a healthy and overdue phase following the impressive rally of the past year.” 

“Support for a pullback seen at $8440 initially and then the 63-day average, currently at $8306. With further price support seen not far below seen stretching down to $8238 our bias remains for this to prove a solid floor.”

“Post a consolidation we will then look for a resumption of the uptrend back to and then above the current cycle high at $9617. We would then see resistance next at the psychological $10000 resistance level and eventually the key high of 2011 at $10190.”