Copper … Ready to Breakout

In our post of 23Sep13, we expected Copper Futures (symbol: HG) to continue trading in the range of $2.95 – 3.45/lb, until that time when it would not do so. That time is likely upon us, and the likely breakout is down. (Reference: Copper Consolidation “Getting Long in the Tooth”, 23Sep13, http://wp.me/p3SbOG-7B).

Copper Chart, 13Nov13

A breakout to the downside would be defined as trade below the $2.95 level. The first level of major support lies at the $2.72 and $2.38 levels. The next level of major support lies much lower at the $1.41 and $1.24 levels. Sounds like a long way to go, however prices visited $1.25 in Dec08 and $0.60 in Nov01, both periods notable for economic recession.

Alternatively, a breakout above $3.40 would negate the view of a breakdown in price.

Murphy & Company’s position models currently have no position in Copper Futures.

#Copper, #Futures, #Metals

Posted in Copper, Metals, Uncategorized

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