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Technical Technical Technical

Technical Update - Copper seems to form bottom and reversal signal

Commodities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

If Copper price doesn’t collapse towards the end of the session i.e. not ending on a positive note, the base metal could be forming a bottom and reversal pattern in the form of a Morning star/Hammer like candlestick formation. The Morning star pattern is not textbook perfect as there should be a body gap between the falling red candle Tuesday and the Doji/Hammer candle Wednesday.
RSI breaking above falling trend line supports the likely rebound scenario

A rebound is likely to take Copper back to around 375-385. If moving above 385 the rebound could go as far as to 400
This rebound scenario is demolished if Copper takes out the low of the Hammer candle at 327.70 and Copper will resume its downtrend

 

Copper d 7 jul
Source: Saxo Group
Copper w 7 jul
Source: Saxo Group

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