After Shanghai Stock Exchange ,we visit Dr Copper’s long term technical outlook in a very simple yet effective way. Price above it’s 12 period monthly SMA, both RSI and MACD are in bull modes. No negative divergence here where all three indicators are singing the same tune of BULL.
Most importantly, change on hand with the price registering higher peaks and troughs. This is the important part which deserves the utmost attention which all the indicators are in sync with.
Current behaviour (last 4 bars/candles) is seen as a secondary reaction or a correction which is finding a support at the moving average so far. Worth keeping an eye on the moving average and price interaction. I could have also drawn an up trend line to see it violated at present suggesting a halt to the uptrend and correction being on hand which we already know .
One would need to drill the last 4 – 6 candles on the weekly for further insights, if they wish. Fact that the major trend is up, it favours an upside breakout at some stage in the future. What to look for in the weekly ? Change, simple as this. I will also post the weekly chart with some clues below the monthly.
Now, Shanghai being FLAT which we have covered , as well as COPPER being in correction gives us two instruments singing the same tune which our market XAO is positively correlated with. What is happening with XAO at present ? As we may have known it for a while, it is also correcting. What is the Major Trend with XAO ? Up and strong still.
I will look at oil next to see what may be the case on that front in it’s young and vibrant bull run.
Charts are courtesy of https://stockcharts.com/
Weekly below with a BOX of TRICKS and may be TREATS which sums copper nicely. OBV at the bottom window may suggest a potential change with the price being on the horizon soon. MACD also worth keeping an eye on as well as the CREEK drawn in Red from above the declining peaks within the trading range.
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