Technicals | May 03 2010
By Rudi Filapek-Vandyck
Copper bulls are facing an even tougher task this month as technical commodity analysts at Barclays Capital report their price charts for April are showing a “bearish reversal” signal, suggesting more weakness should be expected in May.
Adding extra weight to this prediction is the fact that the two previous instances when such a signal appeared on the analysts' price charts, the copper price sunk to a new low in the following month.
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The analysts point out US$7250/tonne is gap and chart support to note. Ideally, they add, the copper price would decline to between here and US$7000/t before forming a potential bottom.
Long-term trendline support lies at US$6960/t.
See also our story from April 29, “How Deep The Fall For Copper?”