If copper is still considered a “tell” for the economy, worries are growing. Note that the 146 area has been a “pivot”, that is, is has served a both support and resistance for the past months. Yesterday’s rally and failure to take out the top trend line of the pennant was a bearish sign, and today it broke under the lower line of the pennant, taking out the 146 support level in the process. A 50% retracement of the rally from the December low to this month’s high is at 143.88, and a breach of that could extend the selloff. I’m looking for an opportunity to get shor.
For a trial to my Swing Trader’s Insight newsletter, sign up here: http://www.danielstrading.com/content/cont.php?sub=brok_hoff_stit
Daily Copper Chart
