Copper Futures (HG) Technical Outlook: Testing Trend Support
Copper Futures Technical Highlights:
- Copper futures (HG) sitting on trend-line support
- Head-and-shoulders pattern a possibility
Copper futures are sitting on the trend-line rising up from the March 2020 low and slope running over from a peak created in January. The slope also makes up what could amount to a head-and-shoulders pattern.
Whether you view it a valid formation or not (right should is a bit weak thus far), confluent support between the trend-line and slope is important. If it breaks, then look for a decline to the 200-day as the first targeted threshold at 3.88 and rising.
To get things moving on the top-side, the trend-line off the record high will need to be broken, but even as such it is possible a larger right shoulder is getting formed. Either way, the only way the formation is validated, whether now or later, is if the neckline breaks.
A stronger trading bias should be determined here shortly..
For the full details, check out the video above.
Copper Futures (HG) Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.