Potential Copper Reversal

Spot copper prices broke above the neckline of the inverse head and shoulders pattern that I highlighted last month, which, arguably, could have initiated the rally in the broader commodity space. Now, however, the industrial metal has met resistance at its 200 day moving average and formed an eveningstar pattern. This three candle pattern represents… Read More »

Copper – Channel Collapse Continues

Copper continues its textbook channel decline, returning again to the 62% retracement of the 2009 low and the 2011 high. This level was tested earlier in the year when it intersected with the channel support line, and a morningstar pattern formed sending price back up to retest the channel top. This time the retracement level… Read More »

China/ Copper Divergence

This chart of the Shanghai Stock Exchange Composite Index ($SSEC) and the chart of Spot Copper ($COPPER) show both having traded under multi-year downtrend lines until this July, when the broad China index broke above its trend line. Usually well correlated, the spot copper price has continued lower under its long term downtrend line, underperforming… Read More »

Spot Copper Pop

Two weeks ago spot copper prices were being squeezed and at the same time testing trend line support and their converging 50 and 200 day moving averages. They broke that support and spent the next week moving lower. Today the price popped 2.9% returning to the technical confluence of support-turned-resistance.