Key Levels To Watch: Copper Trading In Parallel Channel

The commodity copper is trading in a parallel channel that tracks back to 2021 (note the chart above). For those trading it, the upper and lower trend lines of the channel give great trading opportunities.

With copper currently trading at $5.07, the upper band of resistance is at $5.50. This would represent a strong sell. The lower band of the parallel is at $4.25, offering a key buy level.

One thing to note, in my trading methodology, up-sloping parallels eventually break down. This means that the $4.25 support level has to be treated more carefully. Make sure to use a tight stop on any break below.