Happy Thursday, Traderade family! I have two ideas to share with a long bias to share with you all, including my trade setups.
I like this weekly chart quite a lot. The price is above the weekly EMA(8), Ichimoku cloud, and the point of control with some good momentum as RSI is at 58.51. But it isn't looking overheated to the upside.
I think it could have some room to run, so I would set my downside risk management as follows:
Trail stop: -2.1%
Momentum stop: Daily close below weekly EMA(8)
For the trail stop I am setting it as (IV+RV)/29 to calculate the percentage.
In terms of upside potential, I'm content stay long until I get stopped out. I don't have a firm upside target, but if price does revisit 60 I would feel comfortable taking some of the position off as that would be a healthy gain from current levels.
My time horizon for this trade is two or three months.
The industrial metal has had a healthy pullback in the context of a larger uptrend, which remains constructive. I would be looking for one of two scenarios for entry here. Either a close above the daily EMA(8) or a reversion to the trendline followed by a bounce.
In terms of risk management, I would be looking at a close below the EMA(8) if trading above, or a close below the trendline, as an exit. Otherwise my exit target price would be 4.70. My time horizon for this trade would be 2-3 months as well.
CPER is a copper ETF that can be considered if futures aren't desirable. The miners may also benefit. The ETF I watch for them is COPX.
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