Today we focus on copper. Trend in this metal remains down since early February where a top was made near 3.80$. Since then, prices are moving within a downward sloping trend channel as shown below.
This downward move has reached critical levels of support. Copper has been forming a huge triangle from October 2011. The lower trend line of this triangle can be seen in the monthly chart below.
Breaking below 3,40-3,24$ will cancel the sequence of , which add to the bearish signals given. On top of that, prices in the monthly chart seem like they are heading towards the 50% retracement area. This downward move is important to be monitored as many believe that US indices are positively correlated with copper.
For more help trading copper and other metals, don’t hesitate to contact us.As always, thank you for taking the time to catch up on my thinking.
A chart used in technical analysis that shows support and resistance, and momentum and trend directions for a security or investment. It is designed to provide relevant information at a glance using moving averages (tenkan-sen and kijun-sen) to show bullish and bearish crossover points. The "clouds" (kumo, in Japanese) are formed between spans of the average of the tenkan-sen and kijun-sen plotted six months ahead (senkou span B), and of the midpoint of the 52-week high and low (senkou span B) plotted six months ahead.