» Click Here For Archived Market Data

Monday | Wednesday | Tuesday | Monday | Wednesday

For: Tuesday 07-20-2010

More Triangulation

The September copper continues to wind up into a large triangle pattern. The market has been consolidating losses over the last couple months. On the weekly chart, we see where the market flushed out the sell stops below the last winter low and have seen very little follow through. We would look to buy strength in the event this is a reversal triangle.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: On a close above 312.00 versus the September futures, this week, buy the September 325-350 call spread and sell the September 285 put for a debit of 4 cents. Risk 10 cents on the trade. (>$1500 not including commissions and fees), Look to take profits if the option spread fills.