12 December 2012

Copper : Nearing Upper Triangle Boundary

  • 2 recent failed attempts to short Copper, fortunately damage small due to tight stops set.
  • Trading now around 370. On the weekly chart, we are clearly consolidating within a long drawn and large triangle with multiple points of contact on both upper and lower edges, which increases the validity (and accompanying interpretation) of the triangle .
  • For this week, there should be good overhead resistance at 381. May be worth considering another attempt at shorting as we approach.
  • Reminder : The big picture trend is down. Triangle = consolidation of underlying trend = continuation pattern. [Monthly : could be a triangle right shoulder]

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