Copper futures (symbol: HG) have been in consolidation mode since Feb11. The descending, flat triangle pattern is now bound by the $3.25/lb range on the upside and the $2.95/lb range on the downside.
The most recent move down from the $3.32 high on 21Feb14 is impulsive and stochastics have turned down, suggesting more downside action to follow. However, volume and volatility have not yet turned upward, which when they do so will signal resumption of the trend. The price structure should continue to be considered in consolidation until that point at which it is not. Watch for a breakout of the $3.25-2.95 range.
Murphy & Co’s Copper model is currently short. To learn more about Murphy & Co’s position models, visit http://murphycofutures.com/position-models/.