Copper delivered exactly what yesterday’s technical picture suggested. As a reminder:
“(…) As long as Thursday’s gap remains open, Friday’s bearish outlook remains valid:
“(…) with Thursday’s bearish gap still hanging above the market, another retest of today’s low and potentially the next support zone around 617-619 cannot be ruled out.
The failed attack on the lower boundary of Thursday’s bearish gap triggered another wave of selling pressure and price successfully reached our downside target (congratulations again to everyone who took advantage of that move!).
The interesting part starts now.
Copper has reached an important support zone built around former highs from February and April, as well as the May 20 low. That area slowed the decline in May and may once again provide buyers with a foundation for a rebound.
However, looking at the size and momentum of today’s bearish candle, a rebound toward the 38.2% Fibonacci retracement near 611 currently appears more likely than an immediate bullish reversal.
Today’s Takeaway
Dollar (DX.F)
- Watch the upper boundary of the rising channel
- Daily close above -> opens the door toward 101.39-101.59
- Rejection -> likely retest of March highs
- Today’s close is critical
Platinum (PL.F)
- Watch 1665
- Close below support keeps pressure on bulls
- Next major support: 1600
- Bullish improvement begins above 1707
Palladium (PA.F)
- Trading below June 12 bullish gap (1249) increases risk of another downswing and test of recent lows
- Invalidation of today’s breakdown under this support would weaken the bearish case
Copper (HG.F)
- Support zone (612.85-615) currently under test
- Next important support: 611
- Invalidation of today’s breakdown under 627.50 would weaken the bearish case
Stay patient, respect the levels, and let confirmation lead the way.
Anna