Copper hit a multi-year high on Thursday, reaching $7,260, levels not seen since early 2014. Although it stepped back a bit from its fresh high on Friday’s session, but overall, 2017 was a brilliant year for the red metal as it ended the year with more than 30% rise.

Multiple reasons have caused such a growth where strong demand in power and construction sections in top consumer China and supply disruptions in top producer Chile along with the plunge in the US dollar were among the most influential ones.

Now the question is that how much more space does the recent rally has to go. To find it out, let’s have a more precise look to the Copper chart and try to find the probable reversal points through the technical analysis.

As it’s obviously shown on the weekly chart below, the main trend is up since late 2016 after that the metal succeeded to break above its multi-year declining channel.  As depicted, all the price fluctuations from early 2017, have formed a bullish channel, providing good entry and exit opportunities each time bouncing from either sides.

More technically speaking, the price has recovered 50% of the 2011-2016 high to low with no signs of weakness so far as it hits higher highs and keeps higher lows valid. MACD and OsMA oscillators suggest higher prices as no sign of regular divergence between price and oscillator is detected. The next main target in midterm is located at $7,900 area, equivalent to 61.8% Fibonacci Retracement of so-called decline along with the upper band of last year’s upward channel.

Looking closely to the chart, reveals a bullish head and shoulder price pattern with the same target mentioned above from the neckline (shown on the chart below).

Accordingly, the time retracement of the falling swing, shown on the chart, is getting close to its 38.2%, which is one of the most important resistive time zones to expect to form a top.

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Putting all previously mentioned factors together encourage us to state that one of the most solid resistive zones, either from the price or the time perspective is due in near future, meaning that we believe the market is going to form a major top around $8,000 in coming weeks before any significant decline.