May Copper, in heavy downtrend, has finally found support both on the median line and trend line (see weekly chart for a better viewing). In the last five days it has formed a nice consolidation pattern that could lead to big moves. Looks like a bear flag to me but either way is going to be a big move at breakout.
Weird low volatility mkt
14 weeks to end of the 77 bars cycle
note how the 10 year Schiff's Pitchfork has worked nicely foretelling the top 2011 and relatives 2010-2012 highs
potential H&S tgt would mean lowest blue parallel easily reachable in case of a 2008 bear market scenario ( lows in 5 months) here even rapidly if the 77 weeks cycle will be respected
macd...
Copper could move higher next week. Trend is up and MA is giving support. In the past two weeks the price has consolidated inside a triangle flag, I would buy at breakout with stop loss below friday low and target objective 3.8450 (resistance). Reward/risk ratio around 2. If it breaks to the downside it is a sell .
Longer Term View. Pattern should resolve within next few months, if breaks below lower trendline lower channel line test is in the cards. Would be very ugly for global economy. Upper break faces steep resistance and less upside.
I think this is a sell stop 3.7385 with protective stop above friday high and target objective 2.5630. Chinese economy who is driving the sector is slowing down and copper is in a seasonal weak period till the end of the year. This seems a good opportunity to enter a short position.
Read the competing purchasing managers index released today...
Copper price action is showing inversed Head and Shoulder pattern with a successful break out above resistance neckline. The price is sitting just inside upper BB level and Stoch indicator is reaching overbought level. Support on the downside is located at 3.40, the neckline level, which is also 20 and 50 period SMA level. Alternatively resistance on the...
