No trouble yet, but there are question marks
Copper has been one of the best performing metals so far, but are things really that rosy to justify such a high price after such a long bull run?
Here are few points that worth to examine:
- The trend is still bullish, but I see a minor negative momentum divergence on the daily haOscillator, haDelta+ and EWO.
- There is a possible bearish wedge being formed on daily. This pattern often proves to be reliable together with momentum divergence.
- Weekly chart may be losing momentum too, there is also a visible negative momentum divergence relative to price. In case haOscillator fails at its mid line and crosses down again, then a quick retracement will happen to 2,80-2,90 zone.
- Weekly price is extremely far above equilibrium level, even if we consider that as past candles will soon fall out, the Kijun and Senkou B average lines (currently both at 2,5313) will quickly catch up.
- Weekly EWO is at highs not seen since end of 2017, when market started to form a top.
- price on the weekly chart has enterred a hard resistance zone: highs of 2017-2018.
All together it doesn't look heavy, but the question for now wether it's possible to keep up this pace of the bullish squeeze?
Support levels to watch: 2,932 / 2,871 / 2,821
Here are few points that worth to examine:
- The trend is still bullish, but I see a minor negative momentum divergence on the daily haOscillator, haDelta+ and EWO.
- There is a possible bearish wedge being formed on daily. This pattern often proves to be reliable together with momentum divergence.
- Weekly chart may be losing momentum too, there is also a visible negative momentum divergence relative to price. In case haOscillator fails at its mid line and crosses down again, then a quick retracement will happen to 2,80-2,90 zone.
- Weekly price is extremely far above equilibrium level, even if we consider that as past candles will soon fall out, the Kijun and Senkou B average lines (currently both at 2,5313) will quickly catch up.
- Weekly EWO is at highs not seen since end of 2017, when market started to form a top.
- price on the weekly chart has enterred a hard resistance zone: highs of 2017-2018.
All together it doesn't look heavy, but the question for now wether it's possible to keep up this pace of the bullish squeeze?
Support levels to watch: 2,932 / 2,871 / 2,821