Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Tuesday, May 22, 2012

Technically Speaking, Copper’s a Good Bet

Thursday, March 22nd, 2007
By George Leong, B.Comm. for Profit Confidential

Copper prices have been rebounding since early February after being firmly entrenched in a downward trend. The housing market, a major user of copper for wiring and pipes, continues to be weak. That said, traders are betting that China’s insatiable appetite for copper to fuel its staggering economic boom will offset the housing market. Short-term, the trend is bullish, but whether it is sustainable is unknown.

Taking a look at the price chart, copper looks bullish, suggesting more upside moves ahead in the near term. In trading on the New York Mercantile Exchange’s COMEX division, May high-grade copper continues to look quite bullish and recently broke back above the key $3 a pound level on March 16, 2007.

The near-term technical picture looks extremely bullish as the underlying technical strength is quite strong. The recent breakout from a Rectangle formation between $2.40 and $2.70 was encouraging for those on the long side. The strong breakout at $2.70 had decent volume on the break above the 20-day and 50- day moving averages of $2.8439 and $2.6793, respectively. These represent support levels. The moving averages are trending upwards, which helps confirm the bullish trend. The next target will be the 200-day moving average at $3.0712.

Relative Strength, a key driver of momentum, is currently above neutral around 69%, but it will need to strengthen in order to help support the price appreciation.

The MACD is also in a nice uptrend, exhibiting a moderate buy signal that has been in place since early February when copper began to rebound.

The trend is clearly bullish and established. But you can expect to see some near-term selling pressure due to the extremely overbought condition on the chart.

Sustained strength could see May copper surge past the 200-day moving average to the 14-day 80% RSI at $3.4255 and the 52- week high of $3.6400.

 

Next Post:
Previous Post:

Tags: , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorGeorge is a Senior Editor at Lombardi Financial, and has been involved in analyzing the stock markets for two decades where he employs both fundamental and technical analysis. His overall market timing and trading knowledge is extensive in the areas of small-cap research and option trading. George is the editor of several of Lombardi’s popular financial newsletters, including The China Letter, Special Situations, and Obscene Profits, among others. His trading advice on stocks and options is also found on his daily trading site, Daily Profits. He has written technical and fundamental columns for numerous stock market news web sites, and he is the author of Quick Wealth Options Strategy and Mastering 7 Proven Options Strategies. Prior to starting with Lombardi Financial, George was employed as a financial analyst with Globe Information Services.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer