Wednesday, September 30, 2009

Wednesday Commodities Round-Up

Interesting developments in the copper market.

Click on all images for a larger image

A.) Prices are just below the long-term upward sloping trend line. Now, prices have not make a solid break through the trend line -- we don't have a strong downward moving candle. Instead we have prices consolidating just below the trend line. That could mean that instead of a break in the trend line we are seeing a new point to connect the low points; we need more data before we can make a final determination.

B.) There are three things we ultimately look for in technical analysis: reversals, continuations of current trends and divergences between technical indicators and price action. Point B looks like a rounding top pattern.

C.) Notice the MACD has been declining for two months. This tells us that momentum is decreasing.

A.) This shows us a better image of the trend break. Notice that prices have formed a very weak trend break -- the candles are very weak.

B.) Prices have run into a great deal of resistance in the 40.50 - 41 range.

C.) The 10 day EMA is moving lower and has crossed below the 20 day EMA. The 20 day EMA is moving lower as well. This tells us the short and intermediate trends are bearish.