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
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.