Major Breakdown of Copper Coming?
- Posted by TheArmoTrader
- on March 21st, 2013
A while back, copper was used greatly as a proxy on not only the economy but also the markets. For over the past year or so, copper has done pretty much nothing and has not really not been a “tell” for anything. However, this could be changing soon. Is Copper ($JJC) or the verge of a major breakdown?
Below is a chart of Copper Futures ($HG_F) from mid-2010 to now. As you see, there has been this nice symetrical triangle forming over the past year or so. Copper has been stuck in this ~60 cent range, which compared to the years before (2009-2011) is very unusual. Can this breakdown trigger a selloff? What would be key (read: bearish) is if it closed this week (and especially the month) below the trend-line. I’ll be on watch for this and possibly might put on a short trade. The major target would be the 2011 lows of about $3.00.
$HG_F – Copper Futures Weekly chart
Here is a longer view of the chart above (2008-now). As you can see, it has been in a super tight range since late 2011.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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