The chart below shows Alcoa (AA) with black candlesticks and the continuous futures contract for Aluminum ($ALUM). Although not perfect, there is clearly a positive correlation between the two. Overall, both have been working their way higher since March. More recently, both peaked in early June and moved lower the last few weeks.
Click on this chart for details.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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