COPPER finds buyers again around 263.35
Copper (COPPER) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
COPPER ended the week 0.53% higher at 265.70 after gaining $2.10 (0.8%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (COPPER as at Jan 11, 2019):
Friday's trading range has been $3.35 (1.27%), that's far below the last trading month's daily average range of $5.59. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for COPPER. Prices continued to consolidate within a tight trading range between 262.35 and 268.65 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on November 22, 2018, COPPER actually lost -1.70% on the following trading day.
Buyers managed to take out the key technical resistance level at 265.15 (now S1), which is likely to act as support going forward. After having been unable to move lower than 262.90 in the previous session, the market found buyers again around the same price level today at 263.35.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 268.65 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 262.90 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Copper. Out of 71 times, COPPER closed lower 54.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.70% with an average market move of -0.21%.
With five out of the other seven Metal Markets closing higher today, the ones that stand out on the positive side are NICKEL gaining 2.05% and ZINC closing 1.73% higher. On the flipside the worst performers have been PLATINUM closing -1.22% lower and ALUMINUM losing -1.0%. Read more