TECHNICALS | Copper's Up-Trend BrokenWhilst diagonal trendlines are geometrically certain to break, they are also rather difficult to trade, looking very obvious ex-post, but hard to pull the trigger on ex-ante. In this case, I am inclined to take the signal given I have traded the vicissitudes of Copper quite well, particularly in the past 6 months.
Coppershort
COPPER AND COMMODITY SHORT: The dollar effectThe bullishness in copper is misguided, in my opinion.
Sustained dollar strength always hurts commodities in the longer term.
The chart shows inverted dollar versus copper.
A big fat juicy divergence, along with likely continued dollar strength due to a structural off-shore dollar shortage, should put pressure on commodities.
Inspired by Technician's idea for short i took a look at copperTook a look at copper, target and criticals are in the chart. Will wait for retest upper MLH before i enter (or, alternatively for zoom and retest of old (grey) median) . Stop would ideally be above pivot.
Target 1: bottom channel,
target 2 base WRB,
target 3 downsloping median.