Copper: Fibonacci holds the key

Copper formed a triangle in the second leg of the pullback. With the break-out of the triangle it formed the third leg on the upside, thereby achieving its equality target ($3.9). The base metal also reached the weekly upper Bollinger Band as well as the 61.8% retracement mark ($3.95), posted a weekly negative close there. Hence unless the key Fibonacci level is crossed on a weekly closing basis, there is a high probability that bears can push the red metal down. The target on the downside would be the swing low of $3.38.