Copper prices are feeling the heat from a stronger dollar and rising bond yields, posting a 1.2% loss on the day as of the time of writing.
This has not shaken the belief of most institutional investors, who remain bullish on the red metal and see the prevailing downside move in copper price as a correction within the context of the main trend.
One of such institutions is Credit Suisse, which maintains its long-term bullish outlook, even though it feels that copper price may have peaked near-term.
Credit Suisse believes that the near-term correction will continue, as it is long overdue. The firm feels that a solid floor will emerge at $8238 ($3.74/pound).
This outlook is therefore consistent with the present copper price picture on the daily chart, which shows price continuing the downside following the breakdown of the symmetrical triangle which is acting as a topping pattern.
The copper price activity on the daily candle shows an intraday bearish violation of the 3.9970 support level. A breakdown of this support takes price towards the 3.9535 support level, with 3.8340 and 3.7945 lining up as additional support targets to the south.
On the other hand, a bounce on the 3.9970 following a failed break of this support, provides an opportunity for bulls to target the 4.2015 resistance level. Above this area, 4.2755 is another resistance barrier. Restoration of the uptrend requires copper price bulls to break above the 2021 top at 4.3755, with 4.3995 serving as the next price target above this level.
