Copper Futures—Copper futures in the July contract is currently trading at 2.7700 a pound down 490 as prices are still hovering right near a 10 week low still trading below their 20 & 100 day moving average as the trend remains to the downside in my opinion.
I have been recommending a short position from around the 2.8250 level & if you took that trade the stop loss has now been lowered to 2.9240 as the chart structure is outstanding for such a historically volatile commodity.
Copper prices held major sport last Friday at the 2.77 level as there is major support at that area, however if that is broken I think we could retest the contract low around the 2.56 level so stay short. If you did not take the original trade I’m still recommending it at today’s price level as the risk would be around $3,600 per large contract or $1,800 per mini contract plus slippage and commission.
The commodity markets in general continue to move lower as copper prices look expensive compared to the rest of the sectors in my opinion despite the strong economy as I am a technical trader and when prices break down its time to trade with the trend and the trend at this moment is lower coupled with the fact that the risk/reward are in your favor.
CHART STRUCTURE: EXCELLENT