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Robert Edwards
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Contrarian daytrading technician who specializes in locating high probability short term trades while predicting price movement directions with over 85% accuracy. Most of my trading involves either extremely short term micro scalping of stocks or commodities (using 1 minute bar charts), or swing... More
  • Looking For Copper To Turn Down Beginning Tuesday, July 30, 2013 2 comments
    Jul 25, 2013 3:34 PM | about stocks: JJC

    Recently Copper had a protracted bearish down trending technical chart. However, beginning May 2nd, Copper began a corrective, counter-trend bounce that lasted 24 trading days (see chart below). After making a new low and briefly bouncing off $3.00, Copper has traded in a similar corrective, counter-trend bounce that could end on Monday, 7/29/13, so I will be watching for a move lower beginning Tuesday, 7/30/13. Beginning on that date I plan to play copper from the short side, anticipating a move lower.

    Daily Chart Of September Copper Shows Distinct Pattern

    (click to enlarge)

    If you look at the daily September Copper futures chart you will see that on 5/1/13 we hit a significant low and then the next day, on 5/2/13 we made a white candlestick that began a correction that lasted 24 total days of trading. Recently on 6/25/13 Copper traded just below $3.00 and reversed up, making a white candlestick that marked day # 1 of the present correction cycle. Through Wednesday, 7/24/13 we have completed 21 days of correction. I am looking for another 24 days of correction off the low which would place a top occurring on Monday, 7/29/13. Thus, beginning Tuesday, 7/30/13, I plan to begin trading copper from the short side. We don't have to hit a high exactly on Monday, but after that day we will be on borrowed time and much more prone to a sell off. If you look at the above chart you will also notice that we have had three minor tops in each correction phase which helps confirm that we are following similar symmetry.

    Check back on this article and click on the comments section as I will comment and let you know how it turns out.

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  • Robert Edwards
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    Comments (442) | Send Message
     
    Author’s reply » China announced they are cutting back on production at 18 mines, which made traders believe demand could be weakening, so they sold off copper on Friday, a couple days early. Oh well.
    26 Jul 2013, 02:22 PM Reply Like
  • Robert Edwards
    , contributor
    Comments (442) | Send Message
     
    Author’s reply » Copper turned down early and did again turn down hard on the date I mentioned, but it bottomed on Tuesday, July 30, 2013 at just under 3.04. Well, we rallied up on Wednesday, making an outside day up (bullish engulfing pattern), which projected a higher Thursday. That did occur and although Friday was both up and down, it managed a small gain as well, for the third straight up day in copper. We are back to resistance just under 320 and with three up days in a row, I am looking for Monday, August 5, 2013, to be a down day, as copper recently has rarely been ever to rally three days in a row, and never four up days in a row.
    4 Aug 2013, 06:07 PM Reply Like
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