Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Copper Weakness Is a Wait-and-See Game

By

Copper followers should continue to monitor this weakness, eyeing the recent pivot lows for one of three options: a breakdown, a retest and follow-through surprise, or an RSI divergence.

PrintPRINT
Since the late 2011 highs, copper has shown relative weakness to equities… and for that matter, to almost everything else on the trading planet. The crisis in Europe peaked around that time and dropped copper deep in the hole on escalated global growth fears. Those fears have morphed into a slow growth accepted reality that has kept the metal down. [Editor's note: The retail investor is most likely to have exposure to copper in an index fund such as First Trust ISE Global Copper Index Fund (NASDAQ:CU) or iPath Dow Jones UBS Copper Total Return Sub-Index (NYSEARCA:JJC).]

On November 3, I posted Copper Prices Heavy but Rebound Nearing. At the time, its RSI had dropped below 30 and a rebound appeared imminent. After a few more heavy days, the metal rebounded with equities. However, as equities picked up steam, rallying over 5% on most major indices through Friday, Copper continued to lag.

The bounce has been weak to say the least. Copper followers should continue to monitor this weakness, eyeing the recent pivot lows for one of three options: 1) a breakdown, 2) a retest and follow-through surprise, 3) an RSI divergence.

Trade safe, trade disciplined.



Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.

Twitter: @andrewnyquist
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE