This trade technically constitutes as calling a bottom (which I don't particularly like to do), although I have a few good reasons why I'll be taking this long trade. First and foremost, Copper
is currently tuning away from the bottom of it's long term curved downtrend channel
. Secondly, last week's candle was a fairly large hammer
. Thirdly, Squeeze momentum is as oversold as it's ever been. The final reason is that over time, Copper
has consistently gone through fairly rigid periods of increase and decrease. These periods range from about 100-150 days. Copper
is nearing the end of it's current period of decline. A combination of reasons I have listed above describe why I will be long in Copper
until approximately January 2016. Leave your thoughts, comments and a like if this was helpful in any way to you. Happy Trading!