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Copper update

The copper market has moved up from a trading range just above $2 to a wider range either side of $2.50. The initial move up was quick and produced top extensions all the way from around $2.40 to the high point of almost $2.75. We advised selling short which led to a quick loss and we have been sidelined since. There has since been a second rally which produced a more accurate signal on the day of the high close:

copper-multiple-top-exts

We waited to confirm that this was indeed a good signal and that now seems to be the case. We advise selling short again, looking for the market to trade downwards within the range and perhaps a little below it. The chart shown is of December futures which are in delivery now, so March is the month to choose.

All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com