Copper futures (HG.F) chart: the failed breakout shifts attention to 656 support and the 651-655/647-650 zones below.
Yesterday’s quote sets the tone for today – so let’s start there:
“(…) Nevertheless, please keep in mind that a daily close below 669 would be the first signal that a deeper correction may be starting. (…)”
Looking at today’s chart, we can see that despite yesterday’s rally and a new all-time high, buyers failed to hold prices above 669, with the session closing at 670.
As a result, we saw an invalidation of the earlier breakout above the previous highs and above the upper boundary of the green ascending channel, giving sellers fresh technical arguments.
The result?
Copper extended its correction, suggesting that we could see a test of the previously broken upper boundary of the orange consolidation around 656.
If buyers fail to defend that area,…
