30 March 2013

Copper : Bear Confirmation

  • Updated candles for monthly, weekly charts.
  • Monthly : Confirm triangle breakout on downside. Next significant chart point is the SHS NL at 330.30 for next month Apr13. Break of the NL would be another very good bearish trading signal.
  • Weekly : Already the 4th candle outside the triangle but this latest being the first to exhibit sustained downside momentum. Should now have strength to push lower.
  • Daily : Expect some stop losses below recent low at 338.05, not far away. Bearish technicals have been evident for some time now, so do not expect the market to be generally caught long ie no downside price action to be driven by stop losses. Bears will reap rewards from developing underlying copper fundamentals.
  • Trade : Latest batch of shorts are put on at average cost of 343.75. Maintain at current trade size until SHS NL breaks. Then add.