Saturday, October 3, 2015

Copper: Trading setups for a bear continuation and for a possible reversal

Copper is currently in a longterm downtrend.

Today we are presenting 2 trading set-ups:
1.Bearish set up

At 2.40 there is significant resistance from the descending trendline. We will sell at 2.40 with a stop-loss(SL) at 2.41(SL is activated only if the price closes above 2.41).If price moves downwards towards our first target at 2.26 then we will move our stop-loss order to 2.33.Second target for this trade is 2.20.
Currently we favor the bearish scenario as Copper is in a longterm downtrend and we prefer to short the rallies rather than try to catch the knife (=bottom)

2.Bullish set-up

If price manages to break above 2.40 , it will probably move towards 2.50 where it should bounce.In that case our long order will be at 2.43 with SL at around 2.42 (again SL is activated only if price closes below 2.42).First target for this scenario would be 2.57.

Any opinions and ideas expressed herein are only opinion and for informational purposes only.Nothing on this blog is to be considered a buy, sell or hold recommendation.Always do your own due diligence