Copper testing critical support

APPLE to test intermediate term resistance
March 19, 2013
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March 21, 2013

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.

copperdaily

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.

coppermonthly

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.

In the short-term, copper remains below the red but if it breaks out of the blue  downward sloping channel, it can test the cloud at 3,60$.

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.

HigherHighsLowerLows

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.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.