Rebound in Copper Returns Focus On 76.4% Resistance

11 March 2010

The Commodity Specialist view -

COPPER - MONTHLY CONTINUATION CHART:

In late 2008 support was seen close to a long term 76.4% pullback level.

Subsequent recovery saw a test of the 76.4% retracement, with Jan producing a type of Key Reversal Month.

While the Jan high stays intact this negative signal remains valid - the current strong corrective bounce is not uncommon when a trend is in process of turning.

COPPER DAILY CHART - MAY-10:

The 76.4% bounce level on the daily chart was eroded after s/term resistance.

But while the 3.5500 early Jan high remains in place there is still scope for a bear scenario to unfold, keeping in mind the Jan reversal month.

At this stage a drop back through the 3.1600 support area would be an encouraging sign. Meanwhile we must await developments.

Philip Allwright

Mark Sturdy

Seven Days Ahead

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