Over the past 18-months, Doc has been attempting to create a series of higher lows in the chart below:
Copper appears to be creating these short-term higher lows inside of rising channel (1) and (2). Rising support channel (2) is being tested and short-term falling resistance is in play at (3), creating a short-term pennant pattern.
Below looks at Copper over the past 30 years:
Copper has spent the majority of the past 30-years, inside of rising channel (1), where support was hit 18-months ago and the series of higher lows got started. It has spent 100% of the past 6-years inside of falling channel (2).
For the past 6-years, Doc Copper has let down the bulls, as it has peaked at falling resistance, as resistance is resistance until broken. To send a positive message to the bulls, it needs to breakout of falling resistance at (3). If it does breakout, I will look to be a buyer. This is where Copper has peaked year after year, will it be different this time?
On the ETF side of things, the iPath Bloomberg Copper Subindex Total Return Sub-Index ETN (NYSE:JJC) was trading at $29.47 per share on Thursday morning, up $0.54 (+1.87%). Year-to-date, JJC has gained 2.43%, versus a 9.00% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.