Wednesday, January 16, 2013

Copper futures (HG) approach 2-month channel / trendline support

JAN16 1337EST. Copper futures (front-month Mar 2013 contract: HGH3) are approaching support from a two-month price channel. If the channel's lower support line is reached in the next few hours, support might be expected at a price of about $3.5925.

A 2.5-month chart follows just below; the channel in question is shown in dashed red. The lower, support line of the channel is well-defined, perfectly touching local minima in mid-November and on Dec 19 -- in some cases, vis-a-vis candle bodies, in other cases, candle tails.

Admittedly, the upper line of the channel is not robustly defined; the line touches local highs on Dec 4/5 and Jan 1/2, but is breached by spikes on Dec 9 and Dec 11.

HG (Copper futures). Nov 4, 2012 to Jan 16, 2013. 1-hour candles.