Weekly Chart Of Copper Turned Bearish When The Price Decisively

Weekly chart of copper turned bearish when the price decisively broke below the previous swing low at 332 in November 2015. After making a low at 293.50, the correction that started in late November 2015 seems to have been complete.

Shifting our focus to the daily chart, examining the line chart shows that this corrective up move from 293.50 has culminated into a triple top reversal. Any push higher from here on should meet formidable resistance in the 318-19 area.

Scenario 1: A decisive break below yesterday’s low at 296.45

Switching to the bar chart, we can see that price is charting in tune with the orange median line set. Interestingly, the red median line set drawn on the weekly chart (seen in the daily chart) carries a similar slope as that of orange one plotted here on the daily chart. This confluence of the slope from the higher timeframe reinforces the importance of the lines.

The lower parallel of the orange median line set confluences with important swing lows in the 280-84 area. The 280-84 area also contains the 61.8% retracement of Copper’s rise from 138.55 to 512.65. A fall in copper in the short term should find buyers at the confluence. i.e. 280-284

Scenario2: Yesterday’s low at 296.45 holds

We can see in the chart above that Copper took support on the lower parallel of the blue median line set when it charted yesterday’s low. This median line set too carries important frequency and cannot be ignored.

As long as yesterday’s low on the lower parallel holds, the blue median line will push the metal higher whereas the orange median line sloping downwards will keep it under pressure. As a consequence, Copper can spiral sideways into a symmetric triangle.

Key Levels for Copper
Resistance @ 318-19 / 322
Support @ 296 / 280-84

Disclaimer: I, Parindu Patel, CMT,CFTe,MSTA, am not a SEBI registered analyst. I have neither traded Crude Oil in last 30 days nor do I plan to trade it in next 5 days.