Copper Daily Chart Positive Divergence

Here is an update for the copper chart from a couple weeks ago.  At that time, price remained inside the sideways symmetrical triangle waiting for the move out. That move occurred, the RSI, stochastics and money flow all losing their 50% levels, price falling thru the 20 MA, all bearish indications, and price collapsed.  Updated thick red lines are added to the chart now showing positive divergence, thus, the slap down should moderate and some short price recovery should occur.

The blue lines and circles wanted to see lower lows in price so they are satisfied now.  Note the two gaps left behind during this tumble, at 3.93 and 4.00, so they will need filled at some point. Overall, however, the weekly copper chart shows an H&S playing out with a 3.40 target. Also, the projection from that chart was an intial move towards support at 3.70-ish, so we are here for the intial move down.

Thus, on a daily basis, copper should see some relief in the cming days but overall, copper will continue lower for the weeks and months ahead.  Keystone has called for a copper collapse this year so the wild card is if hoarding is as extensive as suspected, thus, if the inventory holders panic now and run to market to cash in before an all out price collapse, they will cause a price collapse and that can occur at anytime.  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.