Copper futures were another market with a breakout setup today. Yesterday had the narrowest range of the previous four sessions, and it’s been forming a pennant on the daily chart. Let’s look at the chart to see how it performed.
The daily chart shows the pennant; potential breakout points to buy would have been yesterday’s high of 230.85 or the top line of the pennant at 232.15. The June 2nd swing high at 235.30 was the first profit objective; it could have also been used as a breakout point. A close over the 235.30 high would be bullish; I prefer to take profits on breakout trades rather than carry them overnight. Too many times I’ve seen breakout moves reverse themselves the following day, which takes away profit. I’d rather get out and look for another trade.
Good breakout rally
