We have provided an updated chart on one of our favorite global economic indicators – Copper. The reverse head-and-shoulders bottom is unfolding and we have taken the liberty of depicting a standard breakout scenario.
CRI's Weekly Commodity Trend Survey turned bearish of Copper over the past week's report. The survey is Short from $3.195 with stops just above recent highs ($3.353) and a target of $3.06 (testing lows from 06/28/13). This Risk/Reward ratio isn't enough in itself to warrant me actually taking a position but with this backdrop in mind, I thought it would be prudent...
I have to admit that I'm surprised by this bullish setup in copper, but it is what it is. The price target, if the H&S is confirmed, is the result of a completed AB=CD pattern and a 0.786 retracement of the March to June downtrend. Does this portend a rebound in China or is it due to home builder strength in the USA? Perhaps both? We shall see.
Copper has formed a coil that is going to breakout soon either way. I think this is going to happen to the downside. Target objective would be 3.1000-3.0000. I expect similar behaviour in the other metals, including precious ones. Breakout is imminent. Copper is typically in seasonal down trend till the end of the year as the construction begins to wind down for...
update on previous post...touching the trendline which can be consider as the neckline....if this is the pattern i expect only a slight retracement here and then to reach the target
This is the main Analog for copper, through the entire 2013, this analog has been very constructive especially with highs and lows. And increasing as of late. Remeber.. Many are dogmatic with their view on Copper, AUD and China "growth". Certain dynamics like this combined will have a dampening effect on copper to the upside and the downside as well.
As seen prices have pierced its prolong H/S top pattern and according to the H/S measuring rule it might fall till $ 2.11. But for the Scalp traders we assume this might be the best time to garner some profit.
Price have formed the bullish Crab pattern ( Harmonic) and formed an One day reversal bar pattern at 1.618 levels. We can also witnessed the Selling climax...
All the metals are showing a similar pattern. I'm not planning to trade them but I expect a bull market for the rest of the month. I think there are good opportunities in the stock market - mining sector.
As we can see in this chart after the first strong down side movement since the 4.64 the price have been stocked with what seems to be a standard flat, and where the b wave is near to it's end (unless its 5th wave extends)
Therefore (and confirmed by the base channel as far as now) is logical to expect that after a new visit to the lows near the end of wave 1/A...
In fall 2012 there was a silver to copper ratio of 9.2 and gold to copper of 471. Now there is silver to copper of 7.6 and gold to copper of 463, though little changed in terms of inflation expectations and forecasts of economic growth. This is highly unlikely the current ratio is going to stand for long. Otherwise, the copper price would untie from the prices of...
Copper needs a move toward $3.50 to confirm double bottom. MACD trending positive and just about to cross to bullish which is a similar setup for the annual rallies in 2009, 2010, 2011 and in 2012.
