Paging Dr. Copper
- Posted by TheArmoTrader
- on April 23rd, 2013
1 month ago I was looking for Copper to possibly break the nice symmetrical triangle it had formed over the past few years. And this is exactly what happened. Copper broke below that trendline which triggered a sell-off (along with some negative $MACRO data-points). Now, a month later, copper is hitting 1.5 year lows. Does it have more room to run or is it the end of this sell-off?
After breaking below the triangle, copper sold off on heavy volume. However, the sell-off has stalled in this $3.00-3.10 area. While most things on this chart scream ‘bearish’, the RSI is indicating “oversold” conditions. Not that I do not think it can’t go lower, but if I had a position on, I think it’d be prudent to take off at least half near this support. A break below 3.00 would trigger the next leg down to the ~2.75 area (2010 low).
Paging Dr. Copper….the patient looks sick.
$HG_F Weekly chart
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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