COPPER Weekly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

Copper has been on a tear higher after the Federal Reserve and other global central banks promised to print money forever. The central bankers are the market. Moral hazard is now sitting on the living room sofa. Copper has been moving sideways through 2.00-3.30 for many years. Price jumps from the bottom rail of that channel to the top in only 6 months.

Dr Copper leads the way in a healthy economy, however, with the multi-decade central banker intervention continuing unabated, even accelerating, traders are likely buying copper anticipating a global recovery due to the central banker largess. What a twisted mess the sick central banks have created making the wealthy class filthy rich while screwing the huddled masses. This will only lead to trouble down the road.

Copper is topping out on the weekly basis but not quite yet. The daily chart is in negative divergence and that will likely coordinate with the neggie d shown on the weekly chart above to create a pullback for a few days or week or two, but price would be expected to recover again due to the long and strong MACD line. When price comes back up after the mini-pullback, say in 1 to 3 weeks time, the MACD line will go neggie d and the top will be in. Copper wil then begin a multi-week slide lower.

Copper keeps making new highs but the ADX is rolling over so the trend is losing steam. The big rally was never really a strong trend with the ADX barely able to get above 30. That tells you the rally has lots more to do with central banker money-printing. Price has violated the upper band so the middle band at 2.75, and rising, is on the table. The Aroon green line is overbot and red line oversold so both would be expected to move towards the center which would be bearish going forward.

Keystone is not currently trading copper or its derivatives long or short but will look for opportunities to short the sector in a couple weeks when the MACD goes neggie d. 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.