COPPER Daily Chart; One-Month Collapse; Death Cross; Oversold; Setting-Up with Positive Divergence

Copper has had a wild ride over the last month. First the wild spike higher as June began and then the historic collapse. If the global economy was healthy, copper would be above 3.30 running higher not at 2.90-ish. If you bring up a US dollar chart you can see how the dollar fell from late May into the first week of June (so copper rallies), then the USD trends higher ever since (sending copper lower). This correlation also occurs with the Chinese yuan that moves inverse to the dollar and in sync with copper.

The copper collapse is remarkable. Anyone catching the falling copper knife has bloody hands. The histogram, stochastics and money flow are positively diverged wanting price to bounce in this daily time frame. Ditto the oversold RSI, stochastics and money flow. The MACD line and RSI, however, are weak and bleak wanting another lower low in copper price after any day or two bounce occurs. There will likely be two jog moves (down-up), the first will turn the RSI into possie d and the second jog will likely turn the MACD into possie d and call the bottom on the daily chart.

Note that the death cross formed in May and the 50 came up to back kiss the 200 two weeks ago and failed again a very negative indication for the weeks ahead.

Thus, probably a one day bounce, then retreat the next day, then another bounce, then a retreat day and then the recovery should have more legs. Look at SCCO, COPX and FCX as potential copper plays for the pending bounce. The SCCO is set up with universal possie d on the daily and ready for its bounce now. Ditto COPX that appears ready to receive the possie d bounce on the daily chart. FCX is chopping sideways but once copper begins recovering, traders will be buying Freeport-McMoRan with both fists. Keystone has no positions in copper as yet but will likely play one of these on the long side going forward perhaps entering right now, then adding to the long position in a few days. Pay attention to the US dollar index since copper moves inversely to the buck.

Since SCCO and COPX are ready to rock and roll right now, copper may bounce right away and place its bottom quicker in this daily time frame. 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.

Note Added 7/14/18 Saturday Morning: The series of long plays mentioned in this recent batch of charts SCCO, COPX, FCX, XLF, JPM, GS, AAL and ACM are all winners across the board +4% to +5%. Keystone entered and exited SCCO, COPX, AAL and ACM. Humorously, the copper plays (Southern Copper Miners and Freeport), AAL and ACM collapse again. You have to be very nimble in these markets. Playing the long side is like picking up nickels in front of a bulldozer. SCCO and COPX still look good going forward so they are potential long plays again, perhaps see how the 2-hour charts look on Monday to look for an entry. Bank earnings continue so probably best to stay out of that drama. AAL looks good going forward; near-term there should be upside juice in that ole bird.