Copper on a brink of a major breakdown
In this article, we are drawing Pitchfork channels for Copper
On the Monthly Copper chart, we can see that the instrument is trying to break below the 265 level of the long-term uptrend channel for a potential major breakdown.
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Learn to find high probability entry trade entry points with stop loss and take profit levels in 5 minutesUsing Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets indicated below.
On the Weekly chart, the instrument formed a downtrend Pitchfork channel which could lead to a test of 225 in case of a daily close below the 260. By a trading perspective, look for the short trade entries in the case of a daily close below the 260 with the stop loss above the 270 level targeting 250 first, and in a case of a daily close below this level look for the extreme extension lower into the 220. Downside invalidation will come on a stop loss trigger and a daily close above the 270 level.
