Connect with us

Hi, what are you looking for?

Stocks

Copper Breaks with an Outsized Move

The S&P 500 moved to a new low from June to October, but copper held up better with a higher low and broke short-term resistance with an outsized move this week. A breakout with an outsized move shows above-average strength and it looks like the downtrend in copper is reversing.

The chart below shows weekly bars for Continuous Copper Futures ($COPPER). Copper fell sharply from March to July and then consolidated with a triangle the last few months (blue lines). Normally, a triangle after a sharp decline is a bearish continuation pattern that represents a rest within the downtrend. Sometimes, however, triangles can break the other way and trigger a reversal, which is the case now.  

Also notice that copper retraced 50-61.8% of the prior advance (gray lines) and returned to resistance from the 2018 highs (blue shading). Prior resistance zones turn into potential support zones and a 50-61.8% retracement is normal for a correction after a big advance (155%). Think two steps forward and one step backward. The indicator window shows Normalized ROC, which is the 1-week point change divided by the 52-week Average True Range (ATR). The indicator hit 1.15, which means this point surge was more than one ATR(52) value and this is the biggest advance since late February. The next chart shows the Copper ETF (CPER) with similar characteristics.

The stock market timing model at TrendInvestorPro remains bearish and has been bearish since April 11th. Most of the ETFs in the MasterList (274) are in downtrends, but some ETFs related to healthcare, defense and energy are bucking the bear. We are also seeing strength in some industrial metals ETFs. Click here for immediate access to our reports, videos and strategy articles.

Normalized ROC, Trend Composite, ATR Trailing Stop and eight  other indicators are part of the TrendInvestorPro Indicator Edge Plugin for StockCharts ACP. Click here to learn more and take your analysis process to the next level.

—————————————

Advertisement

    You May Also Like

    Investing

    RevisingTheBankSecrecyAct_NorbertMichelAndJenniferSchulp_CMFAWP007   The post Revising the Bank Secrecy Act to Protect Privacy and Deter Criminals (CMFA Working Paper No.007) appeared first on Alt-M.

    Investing

    Recently, an investment advisor and Bitcoin proponent tweeted the claim that “[f]or most of human history” the “[s]eparation of money and state was the...

    Business

    Rollee enables worker’s to share their professional data, spread over one or more financial platforms. Ali Hamriti, CEO and Co-Founder of Rollee, is on...

    Business

    The energy crisis means that as the price of wholesale commercial energy hits an unprecedented high, businesses must pay notably more for their energy...

    Disclaimer: successfuldealnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 successfuldealnow.com | All Rights Reserved