Potential bearish flag pattern on Copper futures

Price action on Copper Futures shows that buyers and sellers have been confined between two ascending lines since the beginning of August, taken from the low of US$4.3325 and a high of US$4.4800. While this offers a potential bearish flag pattern to work with, the base metal is seen rebounding from support between US$4.3810 (6M) and US$4.4590 (1Y), with room for price to continue pushing higher until reaching resistance between US$4.7185 and US$4.6105 (1M levels).

As a result, price could continue to grind higher within the confines of the bearish flag until reaching resistance at US$4.7185-US$4.6105 before sellers attempt to push things lower.

Written by the FP Markets Research Team