The movement in the price of spot copper and the movement in the Dow Jones Industrial Average (DJIA) are very highly correlated. That means they generally move higher or lower in tandem. There are, however, periods of divergence and those periods can provide a trading edge. When a stock is moving higher but the MacD… Read More »
Doctor Copper finished a strong 2017 with a sharp rally into year end. Since then, however, it has lost its upward momentum and made a series of lower highs on the chart. The price action this year looks like a symmetrical triangle or wedge. These are consolidation patterns which after completion often lead to a… Read More »
Spot copper prices spent the first six months of this year moving lower below a declining trend line. In June they broke above that resistance and rallied 21% to their early September high. The bullish trend quickly reversed direction and was followed by a pullback to the 38% Fibonacci retracement level of the rally range.… Read More »
This year the price of spot copper finally broke through a five year downtrend line. The metal had been consolidating in a symmetrical triangle pattern since the end of last year, and then in late October this year it took out the triangle pattern downtrend line and made a perfect measured move up and through… Read More »
In late October the price of spot copper ($COPPER) began to rise in bullish divergence to the S&P 500 index. Two weeks later the broader market index joined the copper rally and since then both have moved significantly higher. Over the last two weeks, however, the price of copper has pulled back and the S&P… Read More »
The move higher and then the pullback in copper on Friday looks like price exhaustion and may prove to be a blow-off top. Here’s my take on the charts published on TheStreet this morning.
Copper has lost over half of its value in the last four years, but this year it has been attempting to consolidate in an effort to halt the decline. The daily chart shows the consolidation as a period of lower highs and higher lows forming a symmetrical triangle or wedge pattern. This week the commodity… Read More »
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 »
Spot copper prices dropped below the support line of a long term declining channel at the end of last year but are retesting that level and, in the process, forming an inverse head and shoulders basing pattern. The pattern can be seen on the daily chart with the right shoulder forming this month and taking… Read More »
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 »