Wednesday, May 5, 2010

A Look At the Copper Market

At point (a), prices sold off before reaching a new high. This is an early indication that a trend change is possible.

At point (b), prices sold-off, printing a very strong downward bar (c) after running into resistance at an EMA.

Prices consolidated a (d), but couldn't stage a rally.

Over the last three days, we've seen some very strong downward bars (e).

This is a weekly chart, so the last bar (a) could change by Friday. But as it stands today, prices have moved through long-term support and are resting at an EMA. That is a very important development.