Copper

The Copper market looks to be setting up for a potential buying opportunity.  The current downward move off the 9-19 high has been weak.  The dominant structure had a deep retracement with left handed skewing of 4:9 followed by a supporting structure with a medium deep retracement.  Retracements less than 50 percent are considered weak.  You can look for a bounce at the fib combinations of 261-261, 361-261, 361-361, etc.  Right now the area I'm looking to get long is in the 3.31-3.34 zone.  This is the 361-361 combination from the dominant and supporting structures.  There is also additional fib extensions from the 3rd and 4th level structures (supershallow and deep, respectively).  Another sign of slowing momentum is that the structures time ranges are getting smaller.  First one is 13 bars, second one is 4, third is 4, fourth is 2.  The first area for a possible bounce is at the 78% area of 3.386.  At this level you also have a monthly S1 pivot, a 361-261 fib combo, and a 4 point upward sloping trendline.  I'm looking to play this more conservatively and try to buy a little lower.  You have slight bullish divergence on the RSI, but the MACD has yet to give it's bullish crossover.  However, this often happens a few bars after the market bottoms.  I will be paying attention to the first area of support to see if any candlestick patterns form.  If so, I may enter early.  Finally, an important note is the copper market seasonally posts a late November to mid December yearly bottom that rallies into late April.  So, in summary you have a weak downtrending market that is providing buy signals near a time when it seasonally bottoms.