Copper is nearing the completion of a textbook pattern that targets 3.8660. It is interesting that while stocks were catching their breath (until yesterday) amidst their steady climb, Doctor Copper gave back almost all of its October gains during the third week of the month. But this seems to have been a misdiagnosis, and the good doctor reversed course into a blazing rally. Being a volatile industrial commodity, the metal was kind enough to retrace its initial up-move by 35%, and the follow-through has resulted in a classic pattern. The dollar risk involved in shorting 3.8660 will be substantial if the recommended stop at 3.8715 is used. Alternatively short-sellers can look for a small bearish pattern just below the pivot. (Posted by Doug “harry” McLagan)
