JJC Copper ETF Daily Chart H&S Megaphone Gaps

The doctor is ill, "Medic, Medic!" The negative divergence and rising wedge smack down started it all in February. H&S in play with a 50 target. Note how price broke the neckline at 56, came up for the back kiss, and instead of failing and heading back down, price gapped up to currently test the 20 MA at this 57.70-57.90 area. This gap at 56.5 is like a pretty girl leaving behind a hankerchief for a potential suitor; the man will return gleefully just as price will retrace lower to fill that gap. Price now forming a downward megaphone (red lines if you squint) with lower lows and lower highs.

The bounce in price after the neckline failure occurred at 54, and its critical importance as horizontal support is obvious. Note the positive divergence (purple lines) that bounced price from 54. What does this all this add up to? Copper leads the economy and markets so hang on tight. Price may receive the next down leg from this 20 MA spank down, or if not, price will test the 50 MA at 58.48. That will only prolong the inevitable which is 50 as the summer breezes blow. 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 finanical advisor before making any investment decision.