FxWirePro: Copper Bears Show Signs of Exhaustion
Look closely at the highlighted area in the above chart, and you will find yesterday’s candle, which is a Doji, with apparently very long upper wick, which resembles closely to an inverted dragonfly or gravestone.
Such a candle after almost 7 days of consecutive (there was one break between) sell offs, indicates that copper bears are may be hitting their limits at least in the short run. No wonder that bulls have taken up charges since the morning and copper price has currently broken above yesterday’s high around $2.13/Pound.
Weakness in Dollar, since yesterday, could once more be providing support to copper.
Any short term traders could benefit from this exhaustion by going long at current price and by keeping yesterday’s low around 2.09 area as stop loss. Major profit bookings recommended at 1:1 risk-reward ratio.
However, we would prefer to maintain bearish view and may go short around $2.2/pound area unless $2.3/pound area cleared decisively.