Home > charting trendlines, Financial Ponzi, investing, stock charts, Stock Market, technical analysis > Copper Bounce: Dead Cat or Fall Breakdown?

Copper Bounce: Dead Cat or Fall Breakdown?

Copper crashed decisively to the downside of long-term support a few weeks ago.  It broke under a pennant pattern, then below the neckline of a 4-year Head-and-Shoulders pattern.  FCX, unsurprisingly, has a similar-looking chart pattern.  Both copper and FCX have rallied over the last week or two.  Both have rallied back to short-term trendline resistance.  It will be interesting to see how they react from here, as I think these two cats might provide a more accurate “growth expectation” reading than equities more broadly.

Here is Copper (JJC):

2013-05-06-JJC_CHARTS

Here is FCX.  First, short term:

2013-05-06-FCX-ST_CHARTS

Then, long term:

2013-05-06-FCX-LT_CHARTS

As a bonus, how about the resistance Nasdaq (QQQ) is facing?  That might be meaningful.

2013-05-07-QQQ LT_CHARTS

Though I’m growing increasingly skeptical of how much “investor sentiment” (or even activity!) effects the current ponzi picture.  Those are big checks Mr. Bernanke is handing out to the Primary Dealers.

 

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