COPPER Weekly Chart Sideways Symmetrical Triangle

Do you think copper is about to make an important decision?  The blue triangles show the sideways nature of copper for the last year. Price is now into the apex of the triangle and must choose a direction any time between now and the next couple weeks or so.  Note how the indicators such as RSI and MACD are lining out sideways as well not providing any hints on which way she will break.  Ditto the moving averages; the 200-day is stone cold flat, the slope of the 200-day is very important so watch this as the weeks progress.  The 20 and 50-day MA's are converging into the apex as well forming a confluence at 3.7-3.8.

When she breaks, use the 50% levels on RSI, stochastics and money flow as an early confirmation on direction, likewise the zero level for MACD.  The single subtle hint on this chart is the money flow. Note how price made a higher low over the last month staying inside the blue triangle, but the money flow red line shows a degradation taking place with a lower low printed thru the same time frame. This provides an inside edge for bears.

The vertical thick blue line is about 1.1 distance. Therefore, to provide targets, an upside breakout would send copper to 4.8, a downside breakout will move copper to 2.6.  Use JJC during trading hours to monitor the action. The next two weeks could not be more critical. Copper carries the entire economy and markets on its back, if it goes up, that means the global recovery is strong, Europe will blow over and happy days are coming.  If copper collapses, we fall into deflation with markets tumbling lower, lower to the point where Chairman Bernanke will then step in with QE3.  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.