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Copper prices no longer falling with formation of possible double bottom

PUBLISHED : Friday, 16 October, 2015, 12:38am
UPDATED : Friday, 16 October, 2015, 12:38am

The active high grade copper contract on the Commodity Exchange has possibly outfoxed miners and the media. Despite recent bad press prices are no longer dropping and a potential double bottom has formed at US$2.22 per pound. This lies just ahead of long-term channel support and secular trend line support at US$2.20 - though below support of the last decade at US$2.46. A break above here, which would tie in with a break above a skinny (meaning resistance is weak) Ichimoku cloud, would complete the formation adding weight to today's moving average crossover. We would expect a steady rally to US$2.70 - still within channel resistance.

Nicole Elliott is a technical analyst