Wednesday, November 17, 2010

TheTechnicalTake: Copper

Copper, the metal with the Ph.D. in economics, remains in a range and has failed to break down giving hope to equity bulls everywhere.

Figure 1 is a weekly chart of a continuous copper chart.  The pink and black dots represent key pivot points, which are areas of support and resistance (or buying and selling, respectively).  As you can can see copper fizzled out 2 weeks ago at the 2008 highs of 4.0628; this past week it bounced off of support at 3.6191.  (Sorry for the precision!)  In any case, this is your trading range.  A weekly close above the highs would imply robust economic growth; a weekly close below the lows of the range would imply a sputtering world economic recovery.  This is a chart worth watching!!

Figure 1. Copper/ weekly

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