This week I want to show you how copper is demonstrating that the world is coming out of recession and how this vital component in all building, electrical and industrial production is being bought.
Chart 1 – Copper Weekly Chart
Since March 21, copper has been in accumulation mode. You can see 8 weeks of buying as major buyers step in and commence accumulation (indicated by the cyan arrow up and the green Hawkeye Volume bars).
Chart 2 – Copper Daily Chart
On April 24, Hawkeye gives an entry signal (indicated by the cyan arrow). All trends and volume now in place – this market has been accumulated. The next phase is a price move up until demand is fulfilled.
[Please note the cyan arrows are for illustration only and are not part of the software]
All conditions are in place for copper to work its way higher. Remember, trends rarely go straight up, but zig-zag to higher price levels. But there is little downside risk at the moment.