In the Copper market, billions of free-thinking people/investors look to have formed a bearish descending triangle over the past few years at (1). A little over half the time, this pattern results in lower prices. When the bearish-slant support breaks, of the time lower targets are hit more than 80% of the time, according to Forex Tribe.
Two years ago the Power of the Pattern suggested that silver should decline 50% in value. Why? Because billions of free thinkers at the time had created a bearish descending pattern in silver, when the base was near the $30 level. At the time many questioned the call, since silver had already declined 40% over the prior couple of years. Of late, silver reached the downside target, which was the $15 zone.
Measured-move projections are based on the height of the descending triangle. With that in mind, copper's current pattern is suggesting that it should fall near the $2 level, or about 25% below where it is today.
The odds of that move taking place would appear to have increased, lately, as copper looks to be breaking fairly long-term rising support at (3).
Speaking of copper and silver, take a look at the copper/silver ratio below.
The ratio recently hit its 23% Fibonacci support level and appears to have created a bullish falling wedge -- which results in higher prices two-thirds of the time -- with momentum oversold. A breakout from the bullish falling wedge suggests the best play is to long silver and short copper.