No trouble yet, but there are question marks
Copper has been one of the best performing metals so far, but are things really that rosy to justify such a high price after such a long bull run?
Here are few points that worth to examine:
- The trend is still bullish, but I see a minor negative momentum divergence on the daily haOscillator, haDelta+ and EWO.
- There is a possible bearish wedge being formed on daily. This pattern often proves to be reliable together with momentum divergence.
- Weekly chart may be losing momentum too, there is also a visible negative momentum divergence relative to price. In case haOscillator fails at its mid line and crosses down again, then a quick retracement will happen to 2,80-2,90 zone.
- Weekly price is extremely far above equilibrium level, even if we consider that as past candles will soon fall out, the Kijun and Senkou B average lines (currently both at 2,5313) will quickly catch up.
- Weekly EWO is at highs not seen since end of 2017, when market started to form a top.
- price on the weekly chart has enterred a hard resistance zone: highs of 2017-2018.
All together it doesn't look heavy, but the question for now wether it's possible to keep up this pace of the bullish squeeze?
Support levels to watch: 2,932 / 2,871 / 2,821
Here are few points that worth to examine:
- The trend is still bullish, but I see a minor negative momentum divergence on the daily haOscillator, haDelta+ and EWO.
- There is a possible bearish wedge being formed on daily. This pattern often proves to be reliable together with momentum divergence.
- Weekly chart may be losing momentum too, there is also a visible negative momentum divergence relative to price. In case haOscillator fails at its mid line and crosses down again, then a quick retracement will happen to 2,80-2,90 zone.
- Weekly price is extremely far above equilibrium level, even if we consider that as past candles will soon fall out, the Kijun and Senkou B average lines (currently both at 2,5313) will quickly catch up.
- Weekly EWO is at highs not seen since end of 2017, when market started to form a top.
- price on the weekly chart has enterred a hard resistance zone: highs of 2017-2018.
All together it doesn't look heavy, but the question for now wether it's possible to keep up this pace of the bullish squeeze?
Support levels to watch: 2,932 / 2,871 / 2,821
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.