Tuesday, August 16, 2011

Wednesday Commodity Round-Up

First note that copper is trading right around a very important trend line: one that was established over two years ago. Breaking this would signal an important reversal. In addition, note the very large volume spikes over the last two weeks, indicating a tremendous amount of volume during the recent sell-off.

The above chart shows that prices are finding some support at the long-term trend line. However, prices are below the 200 day EMA and the shorter EMAs are moving lower. The 10 day EMA has crossed below the 200 day EMA, and the 20 is sure to follow over the next week or so. The A/D and CMF show money is clearly flowing out of the market, and the MACD shows negative momentum.

This is not a market I would go long in right now. However, a definitive move below 50.50 would be a good shorting opportunity.