The above chart suggests that the price of copper, which jumped big last week to reach the last peak around $3.3 area per pound from just $3.08 per pound is likely to move down over the coming weeks as it failed to break the recent peak. The price of copper has been trading in a tight range of 40 cents per pound since October last year.
After testing the peak over the last three days, the candlestick price chart produced one inverted hammer and a bearish engulfing in the daily candles, both of which are quite bearish if formed around the peak. Hence we called on readers interested in short-term positioning to sell copper at the current rate of $3.24 per pound with a target of $3.13 per pound and the stop loss around the recent peak.
