Wednesday, November 13, 2013

COPPER Weekly Chart Descending Triangle

Copper is weak in the early going today at 3.1920 and worth watching closely moving forward. The red descending triangle is in play and would lead to disastrous markets moving forward. Using a 3.00 base line for the descending triangle pattern and 4.75 peak, the target below is 1.25, the level after the 2008 market crash. Isn't that something? A case can also be made for a 3.20 base line which would target 1.65-ish. In general, if 3.00-3.20 fails, a sub 2 number would be in play. The vast majority of traders and analysts do not even expect sub 3 copper let alone sub 2. Everyone to a man is focused on the perceived big up in yields that are presumably at the door step. They may be waiting a long time for this inflation and/or hyperinflation to occur. Copper is a key gauge. If copper begins falling in earnest, this likely sends the global markets into a period of greater disinflation and perhaps the D word itself, yes, deflation. Spain's deflation is on the rise and Eurozone youth unemployment hits another record high over 24% today with the situation actually worsening.

The purple lines for the indicators show a squeeze occurring with copper about to make a firm commitment on direction. For now, the bears have an edge as the RSI, stochastics and money flow all fall under the 50% levels into bear territory. The MACD is under the zero line as well, bearish. The price chart shows the purple sideways triangle in play with the copper bulls desperately trying to hold the lower purple trend line. The bulls must make a move without delay to save the day, otherwise, copper may start to fall in earnest. Obviously a break of the 3 level leads to dire consequences for global markets. The 20 MA is 3.25. Watch copper. 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.

Note Added 8:00 AM:  Copper loses 3.1900 and now has a 3.18 handle.

Note Added 8:33 AM:  Copper 3.1705.

Note Added 8:35 AM:  Copper 3.1700. S&P futures -10.

Note Added 8:40 AM:  Copper is collapsing now has a 3.16 handle at 3.1695......

Note Added 9:57 AM:  Copper 3.1610, the vomiting continues. SPX -3 recovering off the initial lows after the opening bell.

Note Added 10:02 AM:  Copper 3.1575......

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