The recent FOMC meeting resulted in the Fed keeping interest rates where they are, which had the financial world talking quite a bit. Technically, one pattern I found especially interesting was that of Copper, which ran into a resistance level on the day of the Fed meeting and came down sharply. This could be interpreted as confirmation of an AB=CD pattern, as the resistance level from which the market fell was a 61.8% level of the move down from point A to point B highlighted on the chart. This confirmed the resistance level from which the market went down as point C, and sets up a target for a point D at around 2.0350. If we place our stop above the swing high at point C now, that would result in a stop loss placement of around 2.50, which setups a reward/risk ratio of greater than 2:1 even without assuming any further pullback.
Copper Forms ABCD Pattern on Day of Fed Announcement, Sets Target Price of 2.04
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