Thursday, April 29, 2010

Copper/Gold ratio

This is taken from this morning's Quick Takes Pro newsletter:

Copper is industrial. Gold is a hedge. When this ratio is rising it suggests the economy is getting better. We had a breakdown from a trendline in February but the Chile earthquake took over the technicals.

Fan lines are a set of three trendlines that are broken and tested to indicate a gradual rolling over. We have an arguable set of four lines but even the last one is broken. We'll look for a move to the bottom of the range and then see if support holds.

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