Bull Trigger in Copper Now Activated
06 March 2009
Our 29th Jan Update looked at Copper, and how it was trying to base. We have switched from the March to May contract now, and the Daily chart has just given an initial bull signal, triggering us bullish.
MONTHLY CHART – CONTINUATION: The major reversal from 4.2700 May high saw the deep 76.4% retracement of the 2001-2008 upmove eroded. However, the lower 1.2200 area, 1.618 swing projection off prior 2.3850-4.2700 upleg, has so far provided nice support.
DAILY CHART – MAY-09: The consolidation in Jan/Feb held nicely above the 1.3920 23-Jan low. It remains key support. There has now been an initial close above the 1.6650/70 range top, providing us with a bull trigger. We may now target towards the 23.6% 1.9040 area initially, and later target the 38.2% 2.2955 retracement level. Buyers on this break (a modest dip would be useful here) will likely favour initial stops just below the 1.3920 low, seeking partial profits near 1.9000. We would be sidelined on a break below 1.3920.
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