Copper prices may turn lower after re-testing former supportCopper prices are retesting support-turned-resistance in the 4.26-4.45 zone, marked by the intersection of a six-month inflection area, the uptrend from the Covid-induced March 2020 low, and a neckline support from early March. Signs of indecision in the daily candlestick structure and negative divergence on short-term momentum studies warn of topping.
In all, the setup suggests that a corrective upswing following a major bearish breakout has run its course, with the emerging downtrend aiming to reassert itself in the near term. The first major layer of support lines up near the 4.00 figure. Fed-speak at the Jackson Hole symposium - particularly the speech from Chair Powell - may emerge as the catalyst for weakness. A measured-move projection implies a move below 3.40 may ultimately materialize.
