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.