Copper, HSI update

Following up on my previous posts of Copper & HSI, both charts’ long term falling resistances have shown remarkable guidance. Copper today got rejected right at the moment it hit its falling trendline, thus continuing to form its right shoulder. It already had warning signs earlier in the day via an hourly rising wedge. HSI as well went above its resistance intraday & reversed strongly back into the triangle.

As long as these 2 key assets remain within their big triangles, the markets don’t have any proper long term direction. I believe they’re both waiting for the SNP500 to break down from its rising wedge, or scale new multi decade highs and break its long term triple top resistance, and my view is the former.

Copper:

Copper031212

HSI:

HSI031212

Copper

Copper has been forming a big multi-year bearish head and shoulder. If this pattern continues, it provides a bearish outlook for global industries as its one of the most widely used base metals, particularly property and infrastructure. To negate this ugly trend, it has to clear its right shoulder’s falling trend line. Look for it to break US$360-370/lb. RSI is forming a converging flag pattern, but short term copper looks positive thru Thanksgiving.