Daily High Grade Copper futures - July2014

Taking Profits in High Grade Copper

We sold our July High Grade Copper futures contract yesterday at 3.21.  We were long from our 310 strike price option we exercised (see previous posts: Copper) , yielding us $2750 (we were long from 310, sold at 321, so we made 11 points x $250/point).  Since we paid $2038 premium for our 310 July call option, so we made a net profit of  $712.00 or made 35% ROI on this trade.

 

Daily High Grade Copper futures - July2014

Copper Takes Off – Moving Our Stop-Loss to Lock in Profits

Boy, are we glad we exercised our High Grade Copper July Call Option and are long Copper futures from 3.10 because over the last few days, Copper prices have shot up to ~3.27 (at the time of this post).   See Daily High Grade Copper chart below.

Previously, we put our Stop Loss at 309  (just below the support level of 3.0985 – see previous post:  Exercising Our Copper Option And Going Long).   Now that prices have shot up, we want to lock in those profits so we called our broker and had him move our stop-loss to just below the support level of 3.147 at 3.14.   If prices continue to rise, we will gradually move our Stop Loss up to lock in more profits.

Daily High Grade Copper futures - July2014

Daily High Grade Copper Chart - July 2014

Exercising Our Copper Option And Going Long

We have been long High Grade Copper futures since April 24 (see our Copper posts here: InstantCommodityTrader.com/blog/category/copper) and our 310 strike price Call option for the July 2014 contract month expired on 6/25 (yesterday) at which time we exercised our option and are now long High Grade Copper futures from 310.

We  put in a stop-loss order to our broker to sell our contact at 309 if prices fall below the support level of 3.0985 (see Daily chart below).  Since we are long from 310, we would only lose $250 if prices go that low (in addition to the premium we paid for the 310 Call option back in April).  If prices continue rising, we will gradually move our stop-loss up to lock in profits.

Daily High Grade Copper Chart - July 2014

Intraday High Grade Copper - July 2014

Our Call Option Now In The Money After Copper Surges

Our 310 strike price July High Grade Copper Call option is now in-the-money as High Grade Copper futures for July shot up today and now hover around 315 (see Intraday chart below).  We are long from 310 and since we have now surpassed our initial target of 313 (see our previous post: Going Long High Grade Copper on Breakout), we look to the 320 level which is the 50% Retracement Level on the weekly high grade copper chart (see Weekly High Grade Copper chart below).

Intraday High Grade Copper - July 2014Weekly High Grade Copper

 

Intraday High Grade Copper Chart

Going Long High Grade Copper on Breakout

Today, High Grade Copper futures gapped up (see Intraday chart below) and broke the the #2 point at 3.069 of the 1-2-3 bottom formation we have been watching.  See our previous post:  High Grade Copper Futures Form 1-2-3 Bottom

We purchased a 310 strike price July 2014 Call option for $2,037.50.  This option expires on 6/25/14.  Our initial target is the 50% Retracement on the July Daily chart of 3.13.  If prices shoot past that level, we next will look to reach the 50% Retracement level of 3.20 as shown on the Weekly chart (see below).

Intraday High Grade Copper ChartDaily High Grade Copper chart - July 2014Weekly High Grade Copper

 

Daily High Grade Copper chart - July 2014

High Grade Copper Futures Form 1-2-3 Bottom

We’ve been watching High Grade Copper futures (see our previous post: New Multiyear Low in Copper Reached Yesterday) and now a wide 1-2-3 bottom has formed over the past several weeks. See the July Daily High Grade Copper chart below.

We will be going long High Grade Copper when prices break above the #2 point of 3.069 on the July chart.   The 50% Retracement Level on the daily chart is 3.13, which doesn’t give us a lot of upside potential, but we also have the 50% Retracement Level of 3.20 as shown on the Weekly High Grade Copper chart (see below).

Daily High Grade Copper chart - July 2014Weekly High Grade Copper

New Multiyear Low in Copper Reached Yesterday

Yesterday, March 10th 2014, Copper Futures reached a low of 2.9955.   Copper Futures prices haven’t been below 3.00 since 2010 making the low reached yesterday a multiyear low.  We will be watching this market carefully over the next few days to see what develops.  Stay tuned.