Wednesday, January 27, 2010

A Closer Look At Copper

Copper is a key component in many products. Therefore, it is considered to be a leading indicator. Because the markets are currently experiencing some turmoil, now is a good time to look at the chart to see what it says about possible future market direction.

Prices have dropped through several key resistance areas. However, the markets are still open so this could reverse.

A.) The 10 and 20 day EMAs are moving lower and prices are below these EMAs. This is bearish.

B.) Prices are above the 50 day EMA.

A.) The A/D line indicates money is still moving into the market.