COPPER & LUMBER PUT IN BIG VOLUME REVERSAL CANDLES...

originally published Tuesday, May 11, 2021

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Both copper and lumber put in clear reversal candles on heavy volume yesterday. We haven’t looked at lumber before but we are taking a look at it here because it has gone parabolic and become so “hot” and its reversal day yesterday was quite spectacular. The big difference between copper and lumber here is that the reversal yesterday in copper probably marked the end of an intermediate uptrend within an ongoing orderly larger uptrend that looks set to continue, whereas lumber’s reversal marks the probable blowoff top of a spectacular vertical ramp…


So, copper is expected to consolidate, probably for some weeks or even a month or more, and perhaps react back some across its uptrend channel before its advance resumes, whereas there is a bigger chance that lumber is “done”, at least for the foreseeable future.

This last rally in copper was predicted on the site in the article Copper and China posted on the 24th March, with the 6-month chart for copper from that article is reproduced below…


End of update.


Posted at 6.50 am EDT on 11th May 21.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.