Copper Analysis 2012-04-26

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Copper had a big day today. Gaining 1.77% and it is now over its 20 and 200 day moving averages. The area of support from last week held, and it also broke through an area of resistance. It may now go and retest its recent highs.

Lesson of the day...Moving Averages.

On this chart there are the 20, 50 and 200 day moving averages. They are the green, blue and red lines respectively that curve up and down. They are considered lagging indicators that show the average price for that time period. The 20 day represents a monthly price average, 50 a quarter, and the 200 is the yearly average.

Comments and questions welcome...also is this something you are enjoying?

Yes I do enjoy your posts on this.

I enjoy learning this side of the game very much continue the good work. When i get some time to devote ill study the subject more. Cant stop learning and thinking else what else would you do?

Thanks J54.

How long does it take for these kinds of gains or losses to trickle down to scrap yards? I know its probably not consistent but has anyone ever done an analysis of that? I know for gas prices if a sheik sneezes it climbs 20 cents but takes an act of god to go back down. I was wondering if yard prices are the same. Quick to go down and slow to go back up.

Copper was up at my yard this week.

If the yard is smart they rise and fall with the market. If they don't another yard will and eat their lunch.

Yup jim said it best. Again.

That is great news. Maybe make up for last year.

Don't go getting excited for $4.00 a pound just yet. We have three things working against us.

1. China is either heading into a recession or is already there. They lie like a rug anyhow so who really knows.

2. A new nation in the EU goes insolvent every month and no one knows how much longer the Germans can keep them propped up.

3. Speculators and mutual funds are profit taking when the price hits 3.90 or so. Not sure why this is their magic number but it seems to be.
You could even add the downward trend in U.S. jobs to the mix. Put all this together and you get $3.70-$3.80 average price.

UK in a double dip recession now as well.

They are all screwed up over there. The problem is they buy more from china than we do.

Starting to like the chart now