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A More Detailed Look at Recent Double Top in Copper

August 10, 2014 at 16:54 by Andriy Moraru

The recent double top pattern that has formed on the daily chart of copper deserves a better look into it. It is a long-term formation spanning from the early July. It follows a bullish trend swing started on June 12. The pattern is slightly sloped to the right, which means that the take-profit level will be a bit harder to reach.

The chart screenshot below shows the pattern borders marked with yellow lines. The cyan entry lines are positioned at 10% of pattern’s height below the lower border. The green take-profit line is located at 100% of the pattern’s height below the border. The double top pattern is a purely bearish formation that appears following a long upward swing and offers a downward trading opportunity in case its “neck” is broken. That is why only a sell signal is considered with this pattern.

Copper - Double Top on Daily Chart as of 2014-08-10

You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for copper, please feel free to reply below.

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