Copper Slides Back to Retest its Long Term Breakout Level

By | December 31, 2016

This year the price of spot copper finally broke through a five year downtrend line. The metal had been consolidating in a symmetrical triangle pattern since the end of last year, and then in late October this year it took out the triangle pattern downtrend line and made a perfect measured move up and through the long term downtrend line. I’ve been highlighting the action here as it played out, including the recent blow-off top, and now the fade that followed has returned price back to the retest the breakout level. How the action plays out in the new year is a guess, but it will take a lot of energy to just return it to a 38% retracement of the five year decline.

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