Wednesday, April 7, 2010

Wednesday Commodities Round-Up

Since the beginning of 2009 copper has been in a rally (A).

A.) Copper starter a sharp rally at the beginning of February. Sharp rallies typically don't last because prices cannot maintain a an upward trajectory like this over time.

Along the way we've seen consolidation in two areas: B and C.

Prices have moved through (F) two important lines of resistance (D and E)

The main issue with this chart is the sharpness of the rally that started in February; rallies of that magnitude can't last.