Copper to extend its technical downtrend during Q4 – Credit Suisse

Copper (LME) keeps hovering at the 55-day moving average (DMA). Nonetheless, the broader risk still leans lower during the fourth quarter, according to strategists at Credit Suisse.

200-DMA at $9,054 to cap

“Copper keeps hovering at the 55-DMA, currently seen at $7,768. With a large top still in place and the market below falling long-term moving averages, we stay biased towards further weakness during Q4 and we note that a break below $6,844 would open up support seen next at $6,300/6,269.”

“Only above the recent $8,318 August consolidation high would stabilize the market more meaningfully. However, we would expect the 200-DMA, currently seen at $9,054, to cap the market the very latest.”