October 25, 2010, Copper: Multiple supports

Copper is trading above the high of $3.68. In terms of price pattern, the red metal had formed a running triangle and has now broken out on the upside. It has formed a channel within a channel. It has recently taken support at the lower end of the smaller channel. Though the daily MACD is showing a loss of momentum, the lower end of both the channels along with the 21 DEMA are key supports. Unless these supports ($3.7) break on a closing basis, the upside target is valid. Hence the target for the metal would be the junction of 123.6% mark ($3.9) and the upper end of the smaller channel ie $4.0