Market Remarks

Is Dr. Copper Coming To Life? Maybe – Week Of September 10, 2012

Weekly Pivots:

Dow S&P500 NASDAQ DJTRA R2K FTSE DAX
Previous 13,091 1,407 3,067 5,007 812 5,711 6,971
Open 13,092 1,407 3,063 5,007 813 5,711 6,947
High 13,320 1,438 3,140 5,074 844 5,808 7,249
Low 12,977 1,397 3,040 4,939 807 5,635 6,893
Close 13,307 1,438 3,136 5,072 842 5,795 7,215
Change % 1.6% 2.2% 2.3% 1.3% 3.7% 1.5% 3.5%
Change 215.8 31.3 69.5 64.7 30.2 83.3 243.7
Close (vs.   MidPoint) Hi Hi Hi Hi Hi Hi Hi
TR % 2.6% 2.9% 3.2% 2.7% 4.5% 3.0% 5.1%
Resistance 2 13,545 1,465 3,205 5,164 868 5,918 7,474
Resistance 1 13,426 1,452 3,171 5,118 855 5,857 7,344
Pivot 13,201 1,424 3,105 5,028 831 5,746 7,119
Support 1 13,082 1,410 3,071 4,983 818 5,684 6,989
Support 2 12,739 1,369 2,972 4,847 782 5,511 6,633

Key Charts:

Copper has had few good weeks. On weekly time frame, it broke above a symmetrical triangle. Now it is entering a congestion zone that it created in the first quarter of the year – with a high near 400. Higher bound of this congestion concides with the lower limit of a support area formed in the third quarter of 2011, making this trading zone to be of significance. The next resistance above this is near 450 level.
  Last week, on daily time frame, copper traded above the 200-day moving average. It also broke above a smaller symmetrical triangle, with a measured move target near 380.
  Copper’s move is getting confirmation from other assets too.  Reuters/Jefferies CRB Index is breaking above downtrend line. Late last month, it reclaimed the territory above the 200-day moving average. It is retraced the 38.2% Fibonacci level of the declone from the 2011 high.
  The boost to copper and CRB Indec is Dollar index is continuing it fall from the 2012 high. In August, it broke below a horizontale (or double top) channel and is nearing the measured move target near 78.75.
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