Copper In Depth

Copper continues to trade within the main ascending channel organizing the general upside wave which started from 125.35 and was stopped temporarily at the recorded top of 365.50 on April 04, 2010 for a downside correction which settled for 38.2% correction which met with the support for the channel and then the resumed the general trend.  Copper
Copper now faces the previously recorded top which is the neckline for a positive pattern that can carry the metal further to the upside over short term basis; yet assessing momentum indicators, the metal is overbought adding more strength to the resistance and might cause volatility as the metal attempts a successful breach which might push the metal into a slight downside correction which might not extend beyond 352.00-345.00 before attaching the neckline once again. 
In general, we expect the upside wave to prevail targeting 396.00 then 415.00, though we should pay attention that the breach of 341.00 might delay the expected bullishness and expand the downside correction.

By: Yasir Mubarak
Senior Technical Analyst