Commodity Blog

The inverted head-and-shoulders pattern has formed on the 4-hour chart of copper, giving bulls hope that the industrial metal is ready to start a rally. The metal was falling since April, stopped the decline in June and since then it was trading in a wide range. Perhaps, copper is ready to go higher on the back of improving outlook for the global economy?

The yellow lines mark the ”shoulders” of the chart. A breakout would occur if the price goes above the neckline (the top yellow line). Traders should not jump in immediately in case of a breakout and should wait till the pattern is confirmed. If the price reaches the level marked by the cyan line, that would a time to enter a long position with the objective at the level shown by the green line.

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

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