The price of copper is up for a sixth consecutive day and up for a seventh time in eight trading days. This the longest daily bull run for Copper since November, when seven days of consecutive rises were followed by a sharp selloff. In mid-November, the price of copper started rising and reached from $3.02 per pound to $3.17 per pound in seven days of consecutive rise. In the next seven days, the price was down to $2.94 per pound.
We expect a similar sort of selling as the price nears resistance around $3.10 area. The price is currently at $3.08 per pound. The Relative Strength Index (RSI), which is a popular oscillator and shows overbought and oversold level, is approaching the oversold level, which should be supportive of our trading idea.
Trading idea:
Sell Copper at the current price of $3.08 with an interim target of $2.98 and final target of $2.90 per pound with a stop loss around $3.18 area.
