Below looks at Doc Copper Futures over the past four years:
Doc Copper created a series of lower highs below line (1) over the past few years. Earlier this year it hit falling resistance again and backed off. Over the past 6-weeks, Copper has witnessed some bullish price action it hasn’t in the past few years, which is breaking above falling highs.
A few weeks ago Copper broke above falling resistance (1) and highs earlier this year at (2). The rally of late now has it testing 2015 highs at (3). A breakout above (3) would send a bullish breakout message to Copper, with the next key horizontal resistance coming into play at the $3.25 level, which was 2014 highs.
Doc Copper weakness over the past few years seemed to have little impact on the broad market. Will Doc Copper’s strength over the past few months and breaking above multi-year falling resistance, have a positive impact on the broad market and suggest that some economic strength is around the corner? In our humble opinion it is too early to tell. The Power of the Pattern did share that an opportunity was in play to make some decent Pocket Change 90-days ago and so far that message has not changed, as gains continue to pile up.
The iPath Bloomberg Copper Subindex Total Return ETN (NYSE:JJC) was unchanged in premarket trading Thursday. Year-to-date, JJC has gained 18.32%, versus a 11.49% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.