Dr. Copper is Ready to Lay Some Pipe
- Posted by Greg Harmon
- on January 31st, 2013
Copper seems finally ready to break out of its doldrums. Since October 2011 it has been forming a symmetrical triangle that could power a $1 move. Moving through the series of dotted line resistance it does not have any room left before a break of the top rail. It peaked over on Wednesday and continuation would give a target higher of 4.75. Notice that the Relative Strength Index (RSI) has been trending higher and is now in bullish territory with a lot of room left before
being technically overbought, like it was the last time it reached the top rail. And this is a good time for the break out to happen about 75% of the way through the triangle. There is some potential energy built up here. Many believe that as goes Copper goes the economy. If that is the case the market was right to shake off the negative GDP print Wednesday morning. Keep an eye on Copper.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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