Still watching copper…

Yesterday, I posted charts on JJC and FCX – two equity options that roughly track copper.  Both have multi-year Head and Shoulder formations in place.  Both violated bottom support and have bounced back above both the neckline and even their short-term downward trendlines.  So was the breakdown a “head fake”… will copper continue to rally?  I don’t know.  However, I do think that Copper futures perhaps give us a better read on copper.  It is a cleaner chart.   Copper futures (/HG) also has a multi-year Head and Shoulders in place, and also formed a multi-year pennant (like JJC).  However, Copper futures never violated the neckline. They have since have rallied back to the old support in its pennant pattern – where it should find resistance.

2013-05-09-HG_CHARTS

This is the chart I will be watching to get a better read on FCX (which I am currently short).

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