Copper – Reverse Head and Shoulders formation remains possible
Technical
Copper – Bullish reverse head & shoulders forming.
Weekly: The selloff from the double top formation has been completed achieving a measured move target of 2.5580. Buyers re-surfaced close to the 50% Fibonacci retracement (2.6280) and a correction higher has resulted. This weeks’ price action has been positive and a higher correction is expected once 2.8750 is breached.
Daily: A classic reverse head & shoulder pattern looks to be forming and the reaction higher from the recent low of 2.6410 has solidified this view. A bullish outside day has been posted with further upside follow through today. The measured move target for the formation is 3.1800.
Action: We look to buy at 2.7500
Stop: 2.6400
Targets: 2.8750, 3.0000 & 3.1800
UPDATE: Dip to 2.7500 has triggered the buy trade idea