Copper in Ascending Channel on Daily Chart

It is not unusual for commodity to form a channel when it has entered a trend. A channel is derived by drawing one line through chart’s highs and another through lows. If prices deviate from a trading band too far it usually means that a trend is lost.

Such pattern has formed on a daily chart of copper. It is interesting to note that the channel is ascending, suggesting that the metal may strengthen after a period of considerable weakness. The yellows indicate a trading range, showing potential support and resistance levels. The cyan lines (which are removed from the channel’s borders by 10% of the channel’s width) suggest possible points of entry in case of a breakout. The green lines were derived by adding (for the top line) and subtracting (for the bottom line) the channel’s width from the band’s borders. They provide target for profit-taking.

It will be interesting to see if copper is able to rally after the prolonged period of decline or it fails back to downward movement.

Click the image to enlarge it to a full-size screenshot:

You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for platinum, please feel free to reply below.

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