February 06, 2012,Copper Under Pressure

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