Copper needs to hold $9011 to avoid a potential head-and-shoulders top – Credit Suisse

Copper (LME) has been capped at key resistance at $10120 and support at 9205/9011 needs to hold to avoid a potential head-and-shoulders top, as reported by the Credit Suisse analyst team.

Weekly RSI momentum already holds a top

“Copper has been unable to stabilize above its 63-day average as well as being capped below key price resistance at $10120 and the subsequent retreat leaves the immediate outlook finely balanced, especially with a weekly RSI momentum top already in place.” 

“Pivotal stays seen ‘neckline’ and price support at $9205/9011 and this needs to hold to suggest the broader trend stays higher with a break above $10120 needed to ease the threat of a top for a move back to the $10748 high, then the psychological $11000 mark.”

“Below $9011 though would now see a ‘head-and-shoulders’ top complete to warn of a more significant turn lower with support seen next at the 200-day average at $8680, then the March low at $8570.”