We are observing an intriguing shift in the copper market that might offer a potentially profitable trading opportunity. On the daily timeframe, copper prices are manifesting a noteworthy breakout from a symmetrical triangle pattern, an event typically associated with substantial price movements.
Moreover, on the hourly timeframe, the metal is crafting a fresh local top, a sign of potential bullish momentum. A strong confirmation signal for this prospective uptrend would be an hourly close above the previous peak at 3.9320.
Assuming this bullish scenario comes to fruition, a strategic long position is recommended, with a Stop Loss set below the recent local low at 3.8765 to manage potential downside risk. We suggest two possible Take Profit targets based on Fibonacci extensions of the previous impulse waves and the range of the symmetrical triangle pattern:
The first target is at 4.0495, aligning with 1:1 and 1:1.618 Fibonacci extensions. This objective yields a favorable 1.5 risk to reward ratio. The second, more aspirational target is set at 4.2360, matching the range of the symmetrical triangle pattern on the daily chart, presenting an attractive risk to reward ratio of 4.5.
Please, consider this analysis as part of your investment strategy, yet remember that trading always involves risks and it is crucial to manage them appropriately.