Commodities Monthly (Jun ’16)
Copper remains under pressure, with the sharp fall from the USD2.2850 high of May now pressuring the USD2.0250~ retracement. A further break cannot be ruled out, as weekly studies come under pressure, but stronger support at the psychological USD2.0000 level is expected to promote stabilisation as the Tension Indicator continues to improve.
If broken, not seen, focus will turn to the critical USD1.9365 low of January, with a close beneath here confirming extension of the dominant multi-year bear trend.
Resistance is at USD2.2000 with a close above here helping to stabilise price action. A break above the USD2.3145 high of March is needed, however, to confirm extension of the January rally, and turn investor sentiment decisively bullish.
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