March Copper
The copper market has given up a bit of its gains over the last month and a half. The advance commencing from early 2016 appears to be rising in an a-b-c pattern. The highs before Halloween peaked out at the 50% retracement level from the extremes of early 2011. I believe that currently we are just above a major confluence support zone. Currently trading at 2.9635 puts the market roughly 5.5 to 6.5 point above the targeted level. The intersection I have isolated is a convergence of channel lines, speed lines and Andrews pitchfork projections. This location is confirmed by similar geometric in studies across multiple time frames. Further more the pullback from the October highs appears to me non-impulsive in nature. The W-X-Y pattern seems close to running its course. Should we witness a dip to 2.91-2.90 against a backdrop of diverging momentum indicators I be favoring an establishment of a long position. This move could extend as far as the low 2.80 that is why it is wise to wait for a divergence signal. A violation of 2.8280 negates this setup. Overhead projection comes in at +/- 3.4150. The risk/reward calculation reads a favorable 7 to 1. Please feel free to contact me at Walsh Trading to discuss suggested strategies to take advantage of this and other market opportunities.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation.
Please join me next Tuesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.