My favorite Head & Shoulders Patterns are the ones that aren’t that at all.
Markets trend. We know that for a fact. That’s why Technical Analysis works. Because as Technicians, we’re identifying primary trends.
And since we know that market returns do not fall under a normal distribution, and in fact, prices actually trend, it gives us a huge advantage over those who purposely choose to ignore price.
Funny how people like to ignore the only thing that actually pays anybody.
I always thought that was so strange.
Anyway, in today’s example of “Not a Head & Shoulders Top”, we take a look at Copper Prices. If you have any exposure whatsoever in the market, stocks, bonds or otherwise, then this is a resolution that will interest you and most certainly impact the value of your portfolio.
So is this a massive top in Dr. Copper? Or just a continuation pattern that will resolve higher, in the direction of the underlying trend? [Read more…]