A Blow-Off Top in Copper? Consider These Charts

The rally in copper this month has been impressive, with the metal up over 23% in just nine trading days. But a long upper shadow candle formed in Friday's session. It may be a sign of a temporary top.

On the weekly chart of the continuous contract, the year-to-date price action can be seen forming a symmetrical triangle pattern, with this month's price action breaking through triangle resistance, then moving sharply higher and piercing a nearly five-year downtrend line.

The weekly candle close, however, took the price of the metal from its high of the period back down to finish right on the long-term downtrend line.

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