Copper has completed a double top and is heading towards $5800, according to David Sneddon and James Gilbert at Credit Suisse in London.
Sneddon and Gilbert say Copper’s break below the $6532/08 lows, which coincided with the 23.6% retracement of the 2016 to 2018 rally, completed a double top and marked a meaningful trend reversal into a bearish market (see Chart). They say the move downwards has already removed support from the 38.2% retracement of the 2016 to 2018 rally and the bias remains bearish.
Sneddon and Gilbert see next support for Copper at $5833/5734 which is i) the measured objective target from the potential double top, ii) the 50% retracement of the rally and iii) the 200-week moving average. This level may be a potential area for formation of a base.