Wednesday, March 10, 2010

Industrial Metals Charts

On the yearly chart in weekly bars, notice that prices broke the almost year-long uptrend on extremely havey volume at point A. Also note that prices fell to around the 38.2% Fibonacci level.

The above charts shows more detail with daily bars.

A.) While momentum has returned

B.) Money is not flowing into the security.

Industrial metals are extremely important because they are used to make manufacturing goods. The lack of volume flowing into the market -- at least for now -- raises some concerns.