Well, here we sit with $COPPER testing the trendline. The price action late last week was not encouraging and we have a little negative divergence on the daily. You can see when copper fails at the zero line on the MACD it's a big deal.
It looks to me like the major miners need a rest before continuing their assault to higher prices. To offset that, I have some other ideas.
I also have wedge formations that look identical to this on $WTIC and $XOI. See the chart here.
Another chart that shows indecision is the $USD. ITs not time to go to sleep on any of these charts. A meaningful breakout any time soon could talk a lot about the longevity for the market overall.
I could have piled 4 more arrows on the right side for you to check out, but I left it clear. You can see in July we were wondering. Here we are wondering again. I mentioned the European currencies the other day. They all got support and rose.
The gold miners performed very well on Friday with the big $20 move down. The 3X gold etf - NUGT was almost unchanged on the day. You would have expected major pain. So someone wasn't selling their miners.
A breakout this week in Commodities could be very bullish. Lets see which way $COPPER goes. It's probably the smartest of the three commodities here. I'll be watching, not predicting this one!
Good Trading,
Greg Schnell, CMT
