Industrial metals started an uptrend (A) in early February. As prices rose, they consolidated in two downward sloping pennant patterns (C and D). In addition, we see several strong, upward gaps (B) indicating the rally has some strength. Pennant D broke the uptrend, but prices have broken out to the upside at E.
A.) The EMA picture is bullish: all the EMAs are moving higher, the shorter are above the longer and prices are above all the EMAs.
B.) Momentum is neutral, although the MACD is about to give a bullish crossover.
C.) We're seeing some money flow into the market, but ideally this index should be rising at a higher and faster level to be more bullish.
On the 5-minute daily chart, notice there have been four upside gaps (A, B, C, and D) and all have broken through important resistance levels (E, F and G).
