Copper Weekly Chart

The weekly chart shows the intermediate term for Dr. Copper. Note the April 2010 top, June 2010 bottom, February 2011 top; the doctor is always out in front leading the broad markets. The red cirlces show the importance of the 20 MA and 50 MA cross; in June 2009 the cross signaled an all clear for the bulls and the upside move was the place to be; in September 2010, the cross was stopped by Chairman Bernanke's QE2 plan that bounced the markets. The equities markets were going over the falls last summer but the 20 MA rebounded again telegraphing more market upside. During the market weakness last summer, the 200 week MA started to flatten out, but this recovered as well.

The RSI and MACD values from early 2010 to late 2010-early 2011 (purple circles) shows how these two indicators wanted to see another matching high at some point in the future. Looks like that point is now as price comes back up. Just like the daily chart, note how the price move higher over the last month is met with all indicators showing a long and strong profile, thus, after a pull back, price will want to come back up again for a matching or higher high. The 450 level is key.

The chart is not impressive from an intermediate to long term perspective--the opposite of what many talking heads are saying now as they now universally squawk for 500 copper. Do not hold your breath, especially with a global slowdown coming. Price will move sideways as it sorts out this next topping area in this 445-465 area, perhaps towards Labor Day. After this top side plays out, copper weakness should resume as the fall months approach with copper testing 400 again, and failing. For now, however, the shorter term, the bulls are having their way. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.