Bull Trap and Target Level Update for Copper JJC

Mar 3, 2015: 11:52 AM CST

What looked like a possible bullish breakout devolved today into a trap as Copper buyers failed to hold the breakout level.

Let’s update our chart of Copper – and ETF JJC – and plan where were go from here:

Similar to Crude Oil, Copper fell through the end of 2014 and at the beginning of 2015, though a positive divergence developed at the lows.

A spike reversal took price all the way  again like oil – to the falling 50 day EMA (blue).

Copper prices – seen here with the @HG futures contract – initially broke the level into $2.640 but soon fell back under the pivot point to trigger a possible Bull Trap.

Note the $2.6000 level as the short-term bull/bear pivot level.

A break above $2.7000 suggests price can quickly trade toward $2.8000 (bullish scenario) while a break under $2.6000 suggests the selling pressure will return, taking price toward $2.4500 and perhaps lower.

The situation is the same in the related ETF symbol JJC:

The logic is the same, only the pivot and target levels are different.

Focus on $32.00 as the upper pivot (along with $32.50) and then the $31.50 level as the lower pivot.

A trigger break lower – especially one that breaks under $31.00 – suggests a sell signal down toward $30 and $29.

Otherwise, a resumption of the breakout into the green zone triggers above $32.50.

Keep watching these levels from within the neutral point where we are now.

Join my colleague John Carter for another exciting webinar Tuesday! Click the image below for more information:

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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1 Comment

One Response to “Bull Trap and Target Level Update for Copper JJC”

  1. McManus Says:

    Now looks ideal opportunity for anyone to trade on this but as we often seen that the price going different ways so we need to be careful and go with strict money management so that will be very handy to our results while also we need to be active to spot things in the right time before the opportunity is lose and thanks to OctaFX broker with their latest cTrader platform I am able to spot every opportunity well within time to make profits.