- New Science in old markets -

Copper bounces to a sell

Comex copper futures made a daily-scale compression ten days ago and rapidly broke downward, signalling the beginning of a new downtrend. The break was quick and gave little chance to 'get on board' by selling short. Now there has been a bounce and prices reached back up to the level of the compression. This happens so often that we have a name for it - a 'return movement' which always represent a second chance to establish the position. Sell short now. Our model portfolio already has the permitted maximum of three commodity positions so we cannot take this trade, yet. Chart:

Copper return