The rally in copper since early last week has spent more than twelve hours bumping up against the midpoint of a pattern which is a thing of beauty. The pivot, at 3.4848, was surpassed by exactly one eighth of a cent on the first try and has repelled three very close approaches since then. We don't know whether the prohibition against "sloppy seconds" applies to shorting this midpoint, which is a tantalizing possibility as we write. An alternative would be to look on an intraday chart such as the 10-minute for a camouflaged entry on the long side. The series of slightly lower highs could easily give rise to such an opportunity, and a ride up to the sibling "D" target at 3.6135 would be lucrative. Note that in the attached graphic the prices are denominated in cents per pound. (Posted by Doug McLagan)
Copper
HGU10 – September Copper (Last:3.2385)
– Posted in: Current Touts Free Rick's PicksThe rally has turned ferocious, shredding targets and creating new impulse legs on the daily chart with ease. A modest rally to above 3.280 will create yet another, adding weight to the prospect of more upside in the weeks to come. I've projected a minimum target of 3.5545 using an "inverse" pattern as shown. These patterns work some of the time, but I don't recommend initiating trades at their predicted swing points unless the target is corroborated by a stall precisely at the CD midpoint. In this case, that has not occurred.
HGU10 – September Copper (Last:3.0365)
– Posted in: Commentary for the Week of March 8 Current Touts Free Rick's PicksAssuming mid-June's high at 3.0675 is not exceeded first, a crucial test of support awaits at 2.8373. That's an important Hidden Pivot midpoint lifted from the weekly chart, and it has the potential to tell us whether Copper has entered a bear market or is instead merely correcting a bull move that had become overextended.
