Copper's Perfect PennantWhile the concerns of a Global Recession are not entirely out of the question, the supportive economic activity we have seen in the U.S. should indicate that the Fed may be closer to achieving its soft landing goals. Construction and housing remain robust where mined resources such as copper are in peak demand. Asia and India have also seen a pick-up in activity where China has stepped in to address its recent economic setbacks by cutting interest rates and backstopping its real estate market.
Let's look at the charts
The Technical landscape indicates a near-perfect pennant formation after carving out a bottom in mid-August and forming a flagpole up to the August 23rd highs. Traders will see the market has consolidated throughout the week, generating the pennant before blasting off on weaker Jolts and ADP payroll data.
The stochastic momentum indicator shows that prices have breached overbought levels, telling you that a new bull market may be in store. Traders will want to use $4 as their upside target, last seen in July, and $3.75 as their first level of support.
www.tradingview.com
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
