Copper, Copper … is this the topper?
- Posted by PeterLBrandt
- on March 10th, 2014
Copper is forming a 30-month descending triangle
The monthly and weekly graphs below display a possible descending triangle in Copper dating back to the late 2011 low or mid 2011 high, depending upon how the upper boundary is drawn. A decisive close below $3.00 would complete this pattern and generate a target as low as $2.04.
An immediate completion of this descending triangle top raises an important question about trading psychology. Should Copper close decisively below $3.00 this week (let’s say we get a $2.95 close), how difficult would it be to short Copper following a straight-line 25 cent decline? If you are like me, I would say that shorting a 25-cent decline would be a difficult trade to execute. Yet, often times the most difficult trades to enter become the most profitable trades.
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
Peter Brandt entered the commodity trading business in 1976 with ContiCommodity Services, a division of Continental Grain Company. From his start in the commodity industry, Peter's goal was to trade proprietary funds. But, he first needed to learn the business. More »