Copper top-down trading analysis
In this article, we will take a look at the Copper from higher time frames to actionable lower time frames
On the monthly chart, we can see that the instrument is capped by the strong upside long-term resistance 280-300 zone. After the brief break below the long-term uptrend Andrews Pitchfork channel 242 level we saw a pullback into the channel and a strong upside resistance zone. This resistance zone needs to be cleared for the upside continuation.
The weekly chart is indicating the 3rd wave of impulsive swing lower from 330 and the beginning of the III minor wave of an impulse. Rejection from here is expected and a continuation lower, while a brief rally to 290 is not excluded, a break below 247 will give us high probability short trading entries.
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On a daily chart, we can see that the instrument is in the rising channel flag. A daily confirmed break below the channel resistance 247 would be enough for an extension lower and a high probability short trade entry. You can go short on a break below 247 with the stop loss above 255 targeting 200 in the medium-term.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
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