Yesterday, Wednesday, March 9, 2011 the iPath Dow Jones-UBS Copper Total Return Sub-Index ETN (JJC) declined 3.35% on record volume which also saw a break through the neckline of a Head & Shoulders Top Reversal pattern. The 50 period exponential moving average (ema) on the daily chart has now turned down slightly.

Combined these indications reflect a weakening of JJC and the likelihood of a further correction. A retracement back up towards the neckline in the near term should provide a setup for a short entry. 

The minimal target based on the Head & Shoulders pattern is approximately $51.61. This is arrived at by taking the difference between the top of the head and neckline (approx. $5.33) and subtracting that from the support of the neckline at time price broke through ($56.94). 

At this time the 200ema is at $51.73, very close to the target. However, this 200ema will start to flatten as price moves lower. (www.etf-portfolios.com)