Copper (LME) has stabilized this week but maintains its recent break below its 200-DMA and key range lows at $8,442/8368, with medium-term weekly MACD momentum also recently crossing into negative territory. Furthermore, the market also recently posted a clear weekly close below the key uptrend from 2020, which we viewed as a major breakdown.

We stay biased towards a trending phase to the downside despite the recent stabilization. With this in mind, we see the next support levels at $7,850, then $7,220 and finally the 2022 low and major retracement support at $6,955/6,844, which could prove a tough barrier.

Resistance moves to the broken lows and 200-DMA at $8,370/8,442, which we look to cap the market to keep the risks biased directly lower.