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Hugo in HTO Trading,

Copper: Makes a new record low

Since the start of the year the commodity fell more than 23.0% and this past week fell more than 3.0%.

Last week copper fell with a narrow range, breaking below 2015 low at 220.20 and closed near the low of the week, suggesting that the bears are in control.

The Stochastic is showing an oversold market but even with the commodity well into oversold territory, we should not fight the strong downward trend.

Copper continues in a well-established bearish phase since the end of October and is trading below all three moving averages the 10, 50 and 200 week moving averages.

Expecting an upward move to a Fibonacci extension at 209.19 on a break below previous week low at 215.05 (scenario 1) or a bounce from a key level at 220.20 could push the commodity down to a Fibonacci extension at 209.19 (scenario 2).