LET THE MARKET TELL WHO WE ARE

Copper has been witnessing a long term down trend since August 2013 and closed at 333.50 yesterday. Provided is weekly chart in which correction from top of 512.65 took place in a channelized manner and this metal found support near 291 whereas 284.10 was the swing low posted in 2010. Most recently copper recovered from 298.05 which is 88.8% Fibonacci correction of bullish swing AB. Swing AB itself is 61.8% correction of bearish swing XA. Fibonacci relationship between these swings hints possibilities of a harmonic structure that can be either Bearish Gartley or Bearish Crab. In case if pattern unfolds as bearish Gartley then current rally is likely to be terminated from 358 zones after completing leg CD of this structure. Presence of descending trend line resistance near 358 also increases significance of this structure. In case if pattern unfolds as bearish Crab then an advance to complete leg ‘CD’, which is 161.8% extension of leg ‘XA’, can’t be ruled out. And this extended rall...

Sign of potential inverse Head & Shoulder pattern appearing on daily chart of COMEX copper after 5 months of consolation among Key support at $2.950 and Resistance at $3.400. 14 Periods daily RSI hovering above 50 levels and supports bullishness in this metal. Areas of 3.400 are now resisted by neckline of this pattern and breakout above that would bring a rally towards 3.800 levels in coming days. Copper can be next rocket among the metals pack.

Copper COMEX bounced off from crucial level $3.0500 which was supported by descending parallel channel line. Metal made a double bottom at the crucial level of 3.0500 and jumped nicely. Price breakout objective for bulls is now placed at $3.2755 and sustained rebound above that level may help this metal to recover from current down trend. Areas of 3.2755 are expected to act as strong resistance and if selling pressure appears near the same then we will see a near term consolidation in this metal between key support at 3.0500 and resistance at 3.2755. Overall trend is down but bears need to show more power by producing closing below $3.000 to confirm a fresh bearish attempt. There are 2 possible opportunities to trade this metal. 1. Selling copper near $3.2600-3.2700 with stop loss above 3.2800 (closing basis for targeting $3.1000 and more down side in short term. 2. Buying copper if manage to produce close above 3.2755. In that scenario buying copper around 3.2755-3.2650 with stop lo...

Copper future on COMEX is trading near critical resistance of $4.0000, sustainability above $4.0000 would offer 4.4000 zones as primary target, immediate support seen at 3.7525 failure below this support area may neglect our bullish expectations. 14 Periods RSI above 50 and MACD above 0 line are suggesting bullish breakout above resistance area is likely. Symmetric triangle after a nice up move also supporting our bullish expectations and after confirmation of breakout we will see a nice up move in copper. Recommendation:  we will remain neutral and waiting for breakout to ride copper bulls. 

Breach of the down sloping trend line resistance is suggesting descending triangle breakout respect of horizontal support at 3.4700 would offer an advance till 3.8155. MACD signal line crossover above 0 lines suggesting valid breakout. A failure below 3.4700 is less likely, a fall till 3.3000 and more down side can’t be ruled out after failure below support 3.4700.