Keystone's Copper Gold Ratio Indicator

Copper:gold ratio chart is a reflection of industrial metals versus precious metals. Since industrial metals are so important to any recovery, the chart moves up in good economic times, but as worries enter the economy and people prefer owning some gold to reduce their fear, the chart moves downwards. The ratio bottomed in early 2009 to lead the way up for the broad markets. You can see the April 2010 top, the June 2010 bottom and the February 2011 top, all very timely indications of broad market direction.

Of interest now is the sideways triangle taking shape, and particularly, we now see price, the 20 MA, the 50 MA and 200 MA, and this is all on a weekly (think long term) basis, all inside a tight range of 0.29-0.30. This is really unique and considering the sideways symmetrical triangle pattern squeezing price in tighter and tighter, price will explode out one side or the other in the coming weeks. The move out of that blue triangle will be a major event and definitely an intermediate to longer term indicator of broad market direction. Looks like we will know the answer by October. 0.35 is firm resistance providing a ceiling for the bulls. Watch price versus the 50 MA. 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 financial advisor before making any investment decision.