Strategists at Société Générale analyze Copper’s technical outlook.

Risk of a deeper pullback towards 7945 on failure to defend 8070

“Copper has revisited the potential support near 8090/8070 representing confluence of a multi-month trend line, the lower band of a steep channel and projections for the decline since January.” “Formation of a daily bullish engulfing denotes possibility of a rebound towards the channel upper limit near 8450. A cross above this is essential for denoting an extended bounce.”

“In the event Copper fails to defend 8070, there is risk of a deeper pullback towards 7945, the 61.8% retracement from July 2022 and 7810.”