Hanging by a thin Copper wire

• Posted by Greg Harmon
• on June 25th, 2015

The year is almost halfway over and it is time to check in on some important charts from the beginning of the year. One of these was Copper. At the beginning of the year is Copper looked in big trouble. It had just broken down from a descending triangle pattern and was testing long term trend support.

Roll forward six months and the worst has not happened. But the picture does not look any better either. The chart below tells the story.

Starting in January the price of Copper bounced off of that 14 year rising trend support line. and it continued higher. That imaginary line worked again, go figure ;-). The RSI turned higher as well, bouncing off of the oversold level at 30. And the MACD bottomed and turned back up towards a cross.

But none of that goodness lasted long. The price seems to have found resistance upon a retest of the breakdown price. The RSI is turning back lower, and the MACD has avoided a positive cross and is heading lower. A dead cat bounce. With the Measured Move to 1.40 still in place, it does seem that Copper is still hanging on by a thread, or a thin Copper wire.

Get my ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through June 2015 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus