Copper Weekly |
- Copper usually behaves like a high-beta Shanghai Composite. So it is odd that whilst the latter has bounced from 1949 to 2233 (+14.5%) since early Dec12, Copper has actually traded lower in the same period. [On 04Dec12, when SSEC made low of 1949, Copper closed that day at 363 vs 358 yesterday]. Could this be indicative that Copper is more worried about a general slowdown everywhere else?
- In any case, we care only about price and pattern here. Reason is irrelevant; and P&P is about to get interesting. [See inset chart and annotations].
- Immediate : We are slowly but surely nearing to a triangle breakout. [Warning : Expect a few more candles later = a few more weeks' waiting].
- In the bigger picture : there is a SHS top in the making.
- Trade : Waiting to sell strength against >378 stop (speculative) , and/or sell weakness on <344 breakout (preferred).
3 comments:
Initiated short HGH3 @ 373 (on fiscal cliff risk on rally).
+369.60
Prefer to wait for triangle to break on downside first.
Low conviction short within triangle.
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