Copper is testing the long-term upside resistance
What is happening with Copper? We are seeing the MONTHLY November bounce off the support 3.000. Does this mean that the Copper will break above the key long-term resistance 3.3000? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month happening in November but we need to see a close above 3.3151 which was the 2018 high for an extension higher to 4.0000. We can also see that there is recently a higher amount of call options for Copper future dates expiry as a clear indication reflecting the rise of spot prices.
The only thing that we can’t rule out is a violent price action around 3.3000 is not excluded and this is exactly the strong resistance for an extreme upside continuation. At the moment a break and confirmation above 3.3000 will be a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. Rejection in that zone or here could lead to a downside reversal and a retest of the important 3-3.0500 support zone.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
