Copper Update

Here's a daily copper chart (continuous contract) with the Commitment of Traders (C.O.T.) data in the bottom window. Copper is consolidating a little and has formed a flag pattern. The key will be to look for a breakout of the flag pattern and then to see if the C.O.T. data confirms the breakout.

If copper breaks out to the upside, I want to see the large traders line head higher and cross zero. Note that the Commercials and Large Traders lines were approaching zero and about to cross each other and then they pulled back...probably because of the recent weakness in the commodities markets (with the exception of yesterday and today). If copper heads higher but the Large traders line falls more, I'm bailing on copper because that should be taken as a warning sign.

Here's the chart with some annotations:Have a great day!

TLT