Copper completes a top — a chart review
Decline in Copper today does major damage to the charts
There are two possible interpretations of the Copper chart. One is bullish, the other is bearish. I will touch on the first and discuss the second.
From a bullish perspective, it is possible to interpret the daily and weekly charts as a possible 7-month H&S bottom. Under this interpretation, the decline today would be a drive toward the right shoulder low. Under the H&S bottom interpretation, the market would form an extended right shoulder with a low in the 305 to 310 zone before prices turn back up
From a bearish perspective, the H&S formation continues to be the focus, but the decline today represents a completed H&S bottom failure pattern. The right shoulder is a completed 3-month symmetrical triangle top with an initial target of 304. The H&S failure objective would be 285.
It is also possible to interpret the weekly as a 30-month descending triangle. This pattern would become more seriously considered if and when the market closes decisively below 293.
$HG_F
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