Technical Special: Copper Bulls Regain Upside Momentum

Mar 23, 2011 (Dow Jones Commodities News via Comtex) -- May Comex copper futures on Wednesday surged to a fresh three-week high of $4.4340 a pound as of this writing. The market has made a strong rebound from a 3 1/2-month low of $4.0760 posted last week at the height of the Japan crisis.

Price action in May copper futures on Tuesday also pushed above and negated a five-week-old downtrend that had been in place on the daily bar chart.

The copper market bulls have gained good upside near-term technical momentum and their next upside price objective is to produce a close above strong resistance at the $4.50 level. The copper market bulls would begin to fade again if May futures prices fell below solid chart support at this week's low of $4.2665.

Near-term technical resistance for May copper is located at Wednesday's high of $4.4340, at $4.4500, at $4.4750 and then at $4.50.

Near-term chart support is located at $4.40, at last week's high of $4.3760, at $4.35, at $4.3250 and then at $4.30.