June Copper’s breach yesterday of a midpoint support at 3.3963 implies more downside over the near term to 3.2605, its ‘D’ sibling. The futures can be shorted from current levels or bought with a tight stop-loss at the target, but if you attempt the former you should use the 3.3825 low shown in the chart for ‘camouflage’. This implies taking the first ‘X’ entry signal on a chart of 5-minute degree or less following an impulsive breach of 3.3825. We’ve executed this trade many times in uptrending vehicles, but it’s time we started practicing on southbound traffic. _______ Note: The corresponding target for the July contract is 3.2560, and for the external low, 3.2700. _______ UPDATE (July 7, 10:13 a.m. EDT): The June contract has bounced reflexively off a recent low of 3.2380. It is bearish that the downside target was exceeded by nearly 2 cents, but bulls would take command of the short- to intermediate-term if they can muster a push exceeding May 21’s 3.5380 peak.
