A new shorting opportunity may be coming soon in Copper. My downside targets will be the break of the neckline, and then to the lower line. Next week should be critical in determining whether copper is ready to initiate a further down move.
Here we have copper where we have seen some major moves for the last few months. the analysis below is a long term analysis.
- monthly wedge broken and retested back in December 2016
- price over all is in an ascending channel
- price has hit the mid range supple levels where we have seen retracements back it up to 50 %.
- currently monitoring price action ...
Yesterday I posted the Copper daily chart showing how the back of the bear was broken with the strong looking MACD divergence with a rising RSI to price. The above chart shows how I think we could well be into the start of wave B
currently waiting for price to hit the 61.8% handle. these areas do have some high level of demand .. with confluence with 61.8% looking for a long term hold on longs for copper...
has been a rough summer......
targets for this will be at 0% ,127% extensions and 161.8% extension.... for now its patience on this precious commodity
Previous resistance can truly become support many times over.
RSI way oversold. price action will determine the rise on lower timeframes.
great opp here, make sure you have a tight stop loss in case it doesn't hold.
Now the red upper channel has been broken, will the bulls push Copper on up to the upper BLUE channel, or will it break out of the current Orange parallel channel before doing so? I'm bullish (at the moment).
If we're truly in a weaker USD cycle, copper is likely to get a natural tailwind from just the fall in the currency.
That's when you don't take into account the supple conditions and the expected demand growth for copper due to OBOR, global growth and potential Trump infrastructure spend.
Copper has a head and shoulders pattern in the weekly chart and breaks through the neckline. After breaking the head and shoulder mode, the theoretical target of copper is 3.6-- 3.7.
Copper has shown signs of stabilizing this week, and the four-hour chart shows the copper again forming a small level of head and shoulders, and the neckline has broken through. ...