Copper Weakness Is a Wait-and-See Game
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.
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.
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