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Copper ETF (JJC) lost over a third of its value in 6 months (2/2011 to 10/2011). Since then a strong retracement rally in Copper has brougth JJC back to its 50% retracement level, of that 6 month decline and has filled a key gap in the chart at (1)..
Of late JJC has declined a small percentage after hitting its 50% level and is breaking a steep support line. Keep a close eye on JJC’s near term action to see if this leading indicator “backs off” much from this key Fib level and sends a new macro message.
Mark…
In the last Silver post (see post here) I mentioned that SLV would have to deal with the GAP fill at $32.64 and that price level should be respected. Once SLV hit that price window it has been choppy since.
On Balance Volume has turned up since the breakout and still looks ok at this time. The Dollar remains in a short-term downtrend, up against falling resistance. Until the Dollar breaks this resistance, its weakness does help cushion weakness prospects in metals complex.
Chris
Hi, Chris: This scary copper pattern makes me want to ‘back off’ on silver, also! (I’m sure Yosemite Sam approves.) Is the silver pattern also starting to look shaky?