Thursday, January 23, 2014

JJC Copper ETN Daily Chart Golden Cross Sideways Channels

Copper tumbles lower today which creates much of the overall market weakness. Keystone's algo, Keybot the Quant, identifies JJC 40.45 as the bull-bear line in the sand and price failed below today ushering in market negativity. Bulls need to move JJC back above 40.45 as soon as possible. Ironically, on such a negative day, the 50-day MA crosses above the 200-day MA creating a golden cross. $COPPER has already created the golden cross to begin the year so the cross was expected for JJC. The golden cross is a bullish signal but what typically happens more often than not is price will be in or initiate a downside move as the golden cross occurs then recover as the weeks play out ahead.

The black circle shows the death cross that occurred in April and price did fall from the 43-44 area down to 37 and now remaining below at 40-ish. The blue support lines, which favor the whole number levels show potential avenues for price to run moving forward. The indicators are weak and bleak wanting further lows over time but the stochastics is agreeable to create a bounce off this price, 50-day and 200-day confluence at 40. Lower prices would be anticipated after any bounce would occur.

Bad news out of China sours the copper market. Dr. Copper is the main key to the global economy. The two largest users of copper are auto's and houses, the two key industries that dictate economic health, or not. Dr. Copper is ill and walking to sick bay for treatment. Will he heal or keel over? The golden cross says heal, but perhaps the golden cross will fail moving forward reverting back to a death cross. 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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