Copper And Antofagasta In Focus For Bulls
Since breaking out of its 7-month range, copper has developed a bullish trend structure and is showing signs of a potential bull-flag above the breakout level. With the 20-day average also supporting, we’re looking for prices to eventually break higher after its period of consolidation.
We’re also keeping a close eye on Antofagasta PLC (ANTO.L), a copper mining company which appears to be trying to take the lead of the underlying metal. Having found support at its 10-day average, its trend structure is a little more aggressive than copper’s, and Wednesday’s price action saw a breakout of a 4-day compression pattern to suggests we’re approaching another momentum phase.
Whilst 933 holds as support, we’re looking for Antofagasta to break above the 975 high and target the 1000-1012 target. But taking into consideration the trend structure which broke it out of a 5-month basing pattern, we think it could be trading much higher over the coming weeks. And, if the stock is to run away without us, we can always refer to copper to see if the metal will follow suit as the setups are quite identical. But for now, we favour Antofagasta as it has found support on a tighter average.