ATTENTION COMMODITY TRADERS
For the past two years, copper has traded in a consolidating-triangle pattern – bouncing back and forth between its rising support line and its falling resistance line.
As you can see in the chart, buying copper at support would have been profitable.
So would selling it at resistance…
[ad#Google Adsense 336×280-IA]Eventually, copper will break out of this pattern, one way or the other.
And the direction of that break will influence the direction of the overall stock market, since copper and stocks historically tend to move together.
There’s still plenty of room for copper to bounce around inside the triangle for another few months.
But as the chart shows, copper is approaching its support line.
Since buying it at support would have been profitable several times over the past two years, I suspect it will be profitable this time as well…
– Jeff Clark
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Source: Market Notes