Copper long-term falling trend line rejection
Copper has been rejected from the long-term falling trendline for the 4 weeks as we can see on the weekly chart. We are within a long-term rising wedge with well-defined breakout levels. For the upside reversal from here, we need to see a price action break above 2.9600 which is highly unlikely as the pair is increasingly losing momentum and the upside is limited. A break and a follow-through below narrow shaped rising wedge 2.79 is required for the downside reversal and a long-term downtrend continuation.
On a daily chart, we can see that the instrument is testing the long-term rising wedge 2.79 uptrend line. Look for the short trade entry upon a break below this level with the stop loss above 2.83 and a profit target of 2.62 near-term. Our trading system is indicating a potential of 200-300 points of profit. Look for the short trade entries invalidation to come only on a clear daily close above 2.8600.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
