The chart shows that the big bull market in copper may be weakening and about to correct.
The 2H ATR (amber line) showing the bull strength, is vacillating in its conviction. Finally, there is a trend-switch for the south.
This is a trend following set up - which means if shorting there can be no targets. Stop losses are usually difficult to define, are large...
Price is facing bearish pressure from our first resistance, in line with our 50% fibonacci retracement, horizontal pullback resistance and 127.2% fibonacci extension where we could see a reversal below this level. Our 20 period EMA and Ichimoku cloud are showing signs of bearish pressure as well.
After the historic bull run across the commodity market it seems we have finally seen a long awaited pullback. My medium/ long term projection is still favouring more bullish price action although as it stands all pairs are range bound.
It seems as though Copper in particular has been scooped up by Chinese investors as well as being influenced by a boom in home...
XCU Copper Great bullish momentum for months.
Key Question - Could we head higher or go lower?
We have a pattern with trend-lines to add confluence. Taking whichever way it breaks - Could add alerts or orders to make it easier. Don't forget to keep in mind USD. On the DXY we are a key area.
This is just trade idea, not a recommendation...