Technical Analysis of copper

Increased probability copper will test major support at $3.00
Copper candlestick weekly chart showing the intermediate downtrend and major support at $3.00

Copper Candlestick Chart courtesy of Stockcharts.com

High probability copper will test major support at $3.00. It is trading below the 50 day and 200 day moving averages. The 50 day has crossed the 200 day moving average. There was a tall dark shaven head and bottom ( very close) candlestick on the daily chart today. The RSI is at an oversold level but it can stay oversold for long periods and this is no reason to buy against the intermediate and near-term downtrend.

Reference the last chart analysis for copper.

I have posted a number of charts on Dr. Copper highlighting the tepid prognosis for the world economy. One of the charts showed the positive correlation between the price of copper and the TSX Index.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Leave a Reply

Your email address will not be published.