COPPER Daily Chart Sideways Symmetrical Triangle Breakdown

Note the blue lines that show the lower price move from May to August with all the indicators sloping down as well. Price bounced but it did not bounce due to positive divergence, in fact, the lower values, shown by the blue circles, indicate lower prices moving forward. Over the last month note how price movement narrowed into an apex of a sideways symmetrical triangle, and on Friday, broke out to the downside. The RSI and stochastics are under 50% which is bearish, watch to see if money flow loses 50%. The 50 and 200 MA's are lining out together and providing a firm resistance ceiling; in August price tested this ceiling and received a prompt spank down. Price is now under the 20 MA, bearish.

Also note how price came up in August to fill the large gap left behind (green circle), and price moved back down a few days ago to fill the gap left behind in August. Of interest is that there are no gaps above, the move down form 4.5 is clean, thus, price has no reason to go back up. Keystone called for a collapse in copper this year in his 2011 predictions, and moving forward we will see if that occurs, or not. The chart favors the bears; watch to see if price stays under the 20 MA, under the psychological 4 level, if money flow loses 50%, and if the low close from August at 3.89 and LOD from August at 3.82 is taken out, or not. These tools are your flight instruments moving forward.

As we enter a global recession, copper will tumble. As price falls, the extent of copper hoarding, especially in Asia, will also be exposed since holders will panic and run to cash in their inventories as price collapses. We have an interesting couple months ahead for the shiny, but now perhaps tarnished, metal. Projection is copper in the 3's for the foreseeable future. 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.