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Ira wrote:
> Is this just a bounce? How high it will go can not be determined at
> this time on a long term chart. but on the short term charts there are
> upside targets. Has it bottomed before reaching the very long term
> targets of 59.50 and 61.50? They only had a 60% probability. Ira
More importantly, what strategy should you employ to take advantage
of copper's current position
regardless of its next move?
I am long two contracts from before the breakdown thru the 70 - 72
cent support level. Because old support becomes resistance, I will sell
1 contract on a rally to the 72 cent area, with the expectation that there
will be a re-test of the recent lows. However, should the market continue
higher, I will be prepared with my 1 remaining long contract. . On the
other hand, should it continue lower, I will buy another contract in the
low 60s, because there is MAJOR LONG TERM support in the 55 - 62 cent
area. .
Bottomline, worrying aboiut characterizations such as whether this is
a bounce, a bear market, or bull market, etc. make for good conversation
over a couple of beers. But, if you want to make money trading, you need
a well defined trading strategy which turns each probable move of the
market to your advantage.
Strategically,
Norman
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