Copper Futures are flirting with their support level at 2.5775, so today I'm watching to see if they break that support line, and more importantly, I will look to see what happens Thursday to see if there is confirmation of the trend.
We could just as easily see Copper fall below the support line, just to bounce right back up on a false breakdown. That's why I prefer to wait a day after the initial breakdown.
In terms of risk - reward, this isn't the best play as of right now. You're looking at 1.69:1 ratio, however, that does include a smaller target profit right at the 200 MA. I would begin to take profits at this range, bring my stops in tighter, and extend my profit target zones to the 2.26 zone, which presents next support level.
All the best,
Brandon
We could just as easily see Copper fall below the support line, just to bounce right back up on a false breakdown. That's why I prefer to wait a day after the initial breakdown.
In terms of risk - reward, this isn't the best play as of right now. You're looking at 1.69:1 ratio, however, that does include a smaller target profit right at the 200 MA. I would begin to take profits at this range, bring my stops in tighter, and extend my profit target zones to the 2.26 zone, which presents next support level.
All the best,
Brandon