Copper Update: Crude Oil Signals To Cover Shorts

Aibek Burabayev - INO.com Contributor - Metals


Last month, I published a post about the correlation of the World GDP and Copper prices. I also covered the close correlation of Crude Oil and Copper prices.

Chart 1 Crude Oil weekly: Sharp rebound

NYMEX Crude Oil
Chart courtesy of TradingView.com

As seen in the above weekly chart, Crude Oil bulls attacked the market without a declaration of war and caught sellers unaware. The price quickly grew more than $10 in just three days.

This severe price action on the weekly chart has formed a so-called Bullish Engulfing pattern. That's when the small red bearish candlestick is followed by a large green bullish candlestick that completely eclipses (engulfs) the previous week's candlestick. It means that bulls have taken control of the market and the price has gone lower (or is at the end of the decline). Continue reading "Copper Update: Crude Oil Signals To Cover Shorts"

Is This The End Of The Bull Market?

Today I'm going to be analyzing charts of the DOW, NASDAQ and the S&P500 and the potential divergence I see in those markets.

It's too early to tell if these markets are going to reverse down and calling tops is never easy, nor am I trying to do that in this particular posting. What I am doing, however, is bringing to your attention a potential problem and a potential opportunity.

What I mean by that somewhat contradictory statement is that these markets could go either way. However, the odds would still favor trading with the trend and the major trend in both the DOW, NASDAQ and the S&P500 continues to be to the upside.

INDEX:DJI

In the three charts I have laid out today you can see the #1 and #2 quite clearly. #1 indicates that prices are going higher and #2 indicates that momentum is not following prices. This could be an early warning sign that things aren't quite up to par and as strong as I would like to see. Continue reading "Is This The End Of The Bull Market?"

2 Stocks To Watch This Week

This week, you may want to keep your eye on 2 stocks:

AliBaba Group Holding LTD (NYSE:BABA) and Under Armour (NYSE:UA)

Both of these stocks are in positive trends and have seen a recent pullback from their highs. Is this a good time to buy?

Let's start with the chart of AliBaba and go through the numbers.

Alibaba chart

1. We have a +85 Trend Score as both the weekly and monthly Trade Triangles are positive, indicating a strong upward trend.
2. $120 is the all-time high for this stock and that was shortly after its initial IPO.
3. Major negative force trend line.
4.- 5. Positive divergence on the RSI line versus negative price action.
6. Breakout over the negative force trend line.
7. Trend change with the monthly Trade Triangle at $91.88.

Strategy: Continue reading "2 Stocks To Watch This Week"

Last Week's Volatility Could Be A Harbinger Of Things To Come

There's a war going on right now and I don't mean overseas, I mean right here in the markets. Last week was a perfect example as the intraday swings of the S&P500 clocked in at a staggering 6.5%. Market volatility often is a precursor of things to come, and the irony of all this action was that the market closed with a loss of -0.65% for the week.

The net weekly change for the DOW was -0.53% and there was an even smaller loss of -0.42% for the NASDAQ. All three indices formed an important Japanese candlestick pattern, a weekly doji candle. Why is this important? A doji candlestick often signals indecision in the market. When the doji forms in an uptrend or downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend and a signal that sellers are losing conviction if seen in a downtrend.

What To Watch For This Week

A lower weekly close would indicate to me that the buyers are beginning lose control of this aging bull market. Here is the "line in the sand" for each of the indices that I am watching. Once below this line, watch for heavy liquidation to come in across the board.

DOW: 17.262
S&P500: 1,992
NASDAQ: 4.090

Gold Is Now Officially On The Move

You might remember on January 7th, I wrote a post on gold (FOREX:XAUUSDO) and the key neckline level. The key neckline in gold was broken to the upside last Friday when gold closed out the week with a very positive 2.9% gain. I now have a confirmed upside target zone of $1,340, which equates to about $132-$134 on the ETF, GLD. To follow all of the entry and exit points for gold, check in daily with the World Cup Portfolio. Continue reading "Last Week's Volatility Could Be A Harbinger Of Things To Come"

Keep Your Eye On First Solar, Inc. (NASDAQ:FSLR) Today

One interesting stock to keep your eye on today is First Solar, Inc. (NASDAQ:FSLR), which broke over a long-term downtrend line in October 2013 and has been moving sideways, but slowly inching upwards nonetheless.

Today's market action in this stock is going to be important because if it closes towards the highs of the day, somewhere around $64.00 as of this writing, a Japanese candlestick "morning star" formation will be created. This can be a strong indication of a reversal to the upside.

This stock has also made a double bottom at $60.75 and again at $62.58. On both the monthly and weekly charts, the RSI level remains above 50, indicating that the longer term uptrend is still intact. This coincides with the monthly Trade Triangle, which remains green and positive. Continue reading "Keep Your Eye On First Solar, Inc. (NASDAQ:FSLR) Today"