Friday, October 25, 2013

JJC Copper ETF Daily Chart Sideways Symmetrical Triangle

Copper is a very important influence on market direction these days. Keybot the Quant, Keystone's trading algo, identifes 40.19 as the key bull-bear line in the sand. Equity markets should leak lower if JJC remains under 40.19 but the bulls will run above the all-time SPX high at 1759 if JJC moves above 40.19. The sideways triangle shows a price breakout to the upside 3 days ago but it was a false breakout; price returns to the triangle and then explores the lower trend line resulting in a bounce. Copper cannot make up its mind as verified by the indicators all funneling sideways. A big decision is at the doorstep. GTX (commodities) have collapsed in recent days and the CRB Rind Index remains bearish so these would prefer to see weaker copper. Worries are surfacing over slower Japan and China growth rates. The 20 MA is a hair under the 50 MA with a bearish cross.

Watch the RSI and stochastic 50% levels and MACD zero line as the pivot points that provide the answer. The RSI is under 50 giving the bears the nod but the stochastics are above 50 giving the bulls the nod. The way JJC moves in relation to 40.19 today dictates market direction. Copper is weak in early trading today. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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