Spot copper prices dropped below the support line of a long term declining channel at the end of last year but are retesting that level and, in the process, forming an inverse head and shoulders basing pattern.
The pattern can be seen on the daily chart with the right shoulder forming this month and taking price back above the 50 day moving average. Daily moving average convergence/divergence is overlaid on a weekly histogram of the oscillator and is above its centerline on both timeframes, and the accumulation distribution line crossed over its 21 period signal average. The commodity has attempted numerous times to right its downward trajectory and failed, and the primary trend is lower, but it will be interesting to observe the pattern play out. The decline has to end at some point.