Copper Analysis March 2015 (D)
Created on Sunday, 01 March 2015 00:23
Written by Austin Galt
Since the recent article, Copper Technical Outlook, price has gone on to bust the January 2015 high resistance level. Let’s check out the action on the daily chart.
COPPER DAILY CHART
Price trading above the January 2015 high means the next high will be a higher high. I still expect a move down before the bear rally really kicks into gear, and while a move to new lows is not out of the question, I now favour a higher low to be put in place.
There are three horizontal lines on the chart which represent resistance stemming from previous swing lows. I expect price to correct before coming back up and busting through on the next attempt.
I have added Fibonacci retracement levels of the recent move up. The first correction in a new bull trend is often deep and I expect just that here with price pulling all the way back to the 76.4% level at US$2.49 and possibly a touch lower.
Once the next low is in price should zoom up once again and search for a spot to put in a high to this bear rally.