Weekly Copper Hits Upper Fibonacci Zone
For those following Copper, particularly as a barometer of economic activity, Copper Prices (index) have retraced into a Fibonacci overhead level. Let’s take a look at this and see if buyers can push prices through the $300 level.
The 2009 rally from the $125 lows to the ‘doubling’ price of $300 has come into the 61.8% Fibonacci price at $300 which also reflects ‘psychological’ or “round number” resistance.
The $300 level was also a support zone throughout 2007, with a slight breach in December – otherwise the level held as support. As such, according to the “Price Polarity Principle,” we would suspect it could hold as future resistance.
Otherwise, the rally has been impressive, and the EMA structure – with regard to the 20 and 50 period EMAs – is now bullish, and price is above these short and intermediate term weekly averages (and above all on a daily basis).
As you see, the 200 week SMA (simple moving average) comes in at the $290 level, which is at confluence with the $300 levels mentioned above.
Should copper turn down from here, it would be bearish for the stock market and other commodities (gold and crude oil), so let’s see if buyers can push us above $300… or if these resistance levels will hold.
Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey, I discussed that almost 10 days ago http://thetickerstreet.blogspot.com/search/labe…
Corey, I discussed that almost 10 days ago http://thetickerstreet.blogspot.com/2009/09/hel…