The Senior Technical Analyst at Commerzbank covering the FICC desk, Axel Rudolph, has provided insight into the future copper price action in the short term. According to the analysis, copper price could inch higher, targeting $12303.50 per ton (i.e., $5.58 per pound).
Commerzbank noted the current all-time high at $10,747.50/ton ($4.88 per pound) and expects the new target to come into play if the 261.8% Fibonacci extension of the price swing from the low of 2016 to the high of 2018, projected higher from the 2020 low.
The bank says it will retain its medium-term bullish forecast as long as the $8570.00 March low ($3.89/pound) remains intact. It expects additional support to register below this level at the 8238.00 price level ($3.74/pound), which is the January 2021 high.
Technical Outlook for Copper
Copper price action for Tuesday has reclaimed most of Monday’s losses. The price to beat remains at the 4.888 price level. If buyers take out this price cap, a new record high beckons. A potential target for the future is the 4.7495 price level (100% Fibonacci extension from the swing low of 4 December 2020 to the swing high of 25 February 2021).
On the other hand, bears need to force a decline below 4.6465 to open the pathway towards 4.5260. Below this level, 4.3995 and 4.2755 are the additional targets to the south that could form dip-buying areas for resumption of the bullish move if a correction does occur.