I hadn’t expected to write about copper again so soon but it’s the biggest mover in futures markets Monday morning, up 1.3% at 3.355, and shows the most compelling price structure from a swing trading perspective (stocks look risky on either side of the market).

EVENT RISK THIS WEEK

My focus at miAnalysis is exchange traded products and scanning the asset classes this morning, JJC looks attractive in a week chock full of event risk – manufacturing data from around the world, rate decisions in the Euro zone and U.K. and the Beige Book to the next FOMC meeting – before we even get to Friday’s May labor report.

CHART ANALYSIS

COMEX copper broke out from a double bottom formation on May 3, when the April labor report came out. After extending gains for a few days it started consolidating. The result in the past month has been a secondary base (or a base on base).

BOTTOM LINE

The implication is that the consolidation should have expelled supply from the market, ultimately clearing the way higher. As long as chart support at 3.2570 isn’t violated, the path of least resistance stays up. I estimate upside potential at 3.4600, as you can see on Figure 1 below.

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