Saturday, March 5, 2016

COPPER Daily Chart Inverted H&S

Copper has staged a strong +20% rally since mid-January. Oil, commodities and stocks bottomed in February so Dr Copper has led the entire stock market higher.  The neon green lines show a textbook head and shoulders (H&S) pattern that formed during November-February and the breakout above the neck line occurs three days ago. The head is at 1.94 and neck at 2.14 which is a 0.20 difference, thus, 2.34 is the upside target. Price hit 2.30 and was spanked down from the 200-day MA resistance.

The stochastics and money flow want a quick pull back but the RSI and MACD want another higher high. The weekly chart indicators are long and strong so in the weekly time frame copper will want to make higher highs so the congestion area from October at 2.34-2.42 is in play and may occur in March-May. The monthly chart is not as enthusiastic hinting at sideways indecision. So copper should enjoy more buoyancy for a few weeks time but as the year plays out copper will likely roll back over to the down side and slip back into a disinflationary and deflationary funk. 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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