Copper, Daily
Following the Commodity Webinar I posted a LONG position on Copper on September 7 and suggested that it was time for copper to catch a bid …… “the strong close yesterday (a 7 day high and strong body on the candle together with a break above the seven day range) triggered a LONG trade at 2.0874. Target 1 is 2.1150 which coincides with the 20 DMA and 23.6 Fib level and Target 2 is 2.1450. The current 14 day ATR is 0.200. This trade is very much against the long term monthly down trend and bear market in Copper that has been in place for some six years.”
Following a positive start last week the traded was closed on Monday (September 12) as it spiked down intra-day to just below the floor of the recent congestion zone, only to close the day positively at 2.1011. Subsequently, following good industrial news from China on Wednesday it has gone on to hit both Target 1 and Target 2 for what would have been a net gain of 576. Instead I had a net loss of 210.
The moral of this one is to always double check your positions; if I had doubled checked the Risk Reward ratio the trade would have remained open. Another entry in the trading journal and another reminder that the market is always right and the market will do what it will do.
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Stuart Cowell
Market Analyst
HotForex
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