Broadening wedges are hard to define; upper and lower boundaries which help contain price expand with time, disguising future price developments which may hold greater near term significance. If this is what's at play then a move back to $250 would appear the best case for the metal.
However, as long as $375 holds (which it has so far managed) then a run-of-the-mill breakout is to hand, with a projected target closer to $500 than $250.
U.S. election years are traditionally viewed as bullish for the market; a change in the guard brings fresh ideas and a brighter outlook. However, the previous two have been anything but. The current protracted Democratic nomination isn't helping given it's only the warm-up to the main event. Wall Street hates uncertainty and it's by no mean clear cut who has the edge coming into November (irrepsective of who wins the Democractic nomination).
Political uncertainty and a strengthening dollar, both painted on the background of a weak global environment, suggests copper prices are likely to fall. This can be good and bad for technology stocks; falling prices imply falling demand (bad), but given this decline will likely be attributed to a rising dollar it should help technology products be more price competitive and help stimulate a recovery which would be good for the markets.
The problem is it just might not happen until November's fight is done and dusted.
Copper breakout-support alert with 1% threshold: $371.25-$378.75
Copper upside target alert with 2% threhold: $490.00-$510.00
Copper breakdown alert target with 2% threshold: $245.00-$255.00
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts, and stock charts website
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