Nice chart pattern on copper

  1. 1.4k
    Posts

    I like it when you see price forming predictable patterns. For the last 18 months copper has been ranging sideways in a broad pattern of consolidation, bouncing off support and resistance. IMO this is about to change. The chart is showing signs that copper is about to break out of its consolidation pattern.

    THE POSITIVES

    November and December seems to have been a decisive period for the price of copper. The daily chart has recently shown signs of a short term improvement. Price has bounced of strong support thru Nov/Dec and is now heading up.

    A strong sign is that thru this period, both MACD and RSI are showing a convergence with price.

    Also, MACD and Stochastic have both crossed up.

    The weekly chart, while not looking as positive, does show a clearer picture. The interesting thing to note about this chart is that the down trendline resistance has become support... imo a sign that price action is about to turn up. This is not conclusive but it will be worthwhile watching to see how the Cu price reacts to the resistance range at the top of the consolidation channel.

    THE NEGATIVES

    Price is still within the consolidation channel.

    RSI is still trending down on both the daily and weekly.

    MACD is still trending down over the longer term.

    Price still has to fight its way thru the upper resistance.

    It could take 2 or 3 months but imo we could be seeing new highs in copper around the 2nd quarter 08

    (Its important to view the daily chart in context with the weekly chart)

    It would be good to see some fundamentals on this atm but I won't have time till weekend. If anyone has some input.. great.

    Cheers

  2. 1.4k
    Posts

    Weekly Chart

  3. 5
    Posts

    When the prices has broken above the resistance trendlines then we'll start talking about copper recovering. From my prospective it still looks like another fluctuation of the prices

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