Short term
/
Sell
Trade view / 08 September 2017 at 7:42 GMT

Copper rally looks due for a correction

Director / PIA-First Limited
United Kingdom
Instrument: COPPERUSDEC17
Price target: 290.00
Market price: 310.00
Background

Copper prices have extended their bullish move higher to levels not seen since 2014.
The monthly chart highlights a sharp acceleration since June and shows little in the way of resistance until the $350 area.

The weekly chart highlights a potential bearish shooting star, which would require confirmation with further losses next week.

The daily chart highlights the break of the August trendline support after a week of bearish candles, including yesterday's hanging man. The relative strength index (RSI) is correcting from overbought conditions, and further downside is expected.

Parameters

Entry: Sell Copperusdec17 at current levels and on a rally to $313

Stop: A break above the recent high of $318

Target: $300 & $290

Time horizon: 1-2 weeks


COPPERUScont. Monthly chart showing long-term bullish trend and recent acceleration
mpon
Source: Saxo charts

 
Weekly chart highlighting potential bearish shooting star
wee Source: Saxo charts


Daily chart with hanging man
day Source: Saxo charts


— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here

2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Dear steve
I have short position in copper @₹440.30 should I wait for lower side or book the profit pls. I advice.
2y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Prices are approaching the 1st target so there would be no harm in taking partial profit here. I still believe we will see further losses and there are no signs that the current move lower is stalling.
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Sir
What would be the 1 st target & 2 nd target pls update
2y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
$300 & $290 as per commentary
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Dear Steve
What is your view in Crude oil if short then what will be the target & if long then what
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Want to make position
2y
Morten Olby Morten Olby
Now in 297 and short for a long time. Thanks Steve, your timing is very good. Do you still believe that price will go down to 290?
2y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
No real signs of this move slowing! 286-290 would not be a surprise.
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Dear Steve
I had short position in copper @₹440.30 I have booked partial profit @₹420.15 but still 1 position left should I wait or book profit
2y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
I remain bearish on copper and expect further downside to target $290 & $286
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Thanks for your support
2y
SHASHANK SHEKHAR SHASHANK SHEKHAR
Dear steve
Do you still remain bearish in copper want to create position pls. Update your views.
2y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Price action from Sep 28 is positive forming a bullish outside candle. RSI is now neutral. The medium term trend is bullish and we have trend line and Ichimoku cloud support at 290 and below. Short term this offers good risk/reward at buying dips in front of 290 with a stop below 285. Targets are in front of 300 and above.

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