Copper’s nasty slide has been getting a lot of ink lately, since it is viewed as a harbinger of a weakening economy. From a technical standpoint, the futures decisive breach of a midpoint support that had held for 17 months augurs more downside over the near term to at least 2.7780, equivalent to an 11% fall. If this Hidden Pivot ‘D’ target were to give way, however, we’d probably be looking at a second wave of selling down to 2.4435. Camo traders should position from the short side using charts of 15-minute degree or less to identify promising entry points. The hourly chart is where you should look to assess trend strength and to pinpoint reversals. At the moment, it would take an upthrust exceeding 3.2565 to turn the 60-minute chart bullish. _______ UPDATE (April 28, 10:34 p.m. EDT): Copper has bounced to 3.2890 off a 3.0684 low that left my downside target unsatisfied. The target remains compelling, and so we should be skeptical of this rally. It has achieved impulsive status on the 240-minute chart nonetheless, but just a little more weakness, exceeding a 3.1485 low recorded last Wednesday, would turn the 240-minute chart into a duel between bulls and bears (see inset, a fresh chart).
