Copper takes a tumble, but are there more losses to come?

Copper prices have suffered their worst day of 2017. IGTV’s Jeremy Naylor looks at the charts and the trading opportunities this may present.

Tuesday’s move in the price of high grade copper has taken it outside the Bollinger band. But with moving average convergence divergence (MACD) pointing lower, and the relative strength index (RSI) only flirting with being oversold, IGTV’s Jeremy Naylor suggests that a little bit of the air needs to come out of the short trade before we see a resumption of the recent drop. Something that would arrest the drop would be support at 28,225, however, that is some distance from current price action at 29,000.

If 28,927 is broken on a daily basis, the 200-day simple moving average (SMA) would offer further support at 28,566, and then there’s a further level of support at 28,225. That was the level of resistance back in February this year.

Jeremy also explains where to place a stop on a short trade, which would provide safety if the price snaps back.

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