The Hourly View for Copper
- At the moment, HG1’s price is up $0 (0.04%) from the hour prior.
- This is a reversal of the price action on the previous hour, in which price moved down.
- Regarding the trend, note that the strongest trend exists on the 20 hour timeframe.
- The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.
Copper’s hourly price chart is shown below.
The Daily View for Copper
- At the time of this writing, HG1’s price is down $-0.05 (-1.06%) from the day prior.
- The daily chart shows that Copper has seen 3 straight down days.
- If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 50 day timeframe.
- Regarding moving averages, it should first be noted that price has crossed the 20 day moving average, resulting in them so that price is now turning below it. The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
- Divergence between HG1’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in HG1’s price.
Below is a daily price chart of Copper.
Featured Copper Idea From TradingView
Below is a trading comment entitled Education excerpt: Relative Strength Index you may find interesting:
General information The Relative Strength Index (RSI) is a momentum oscillator that was introduced by J. Welles Wilder in an article published in Commodities magazine in June 1978. The Relative Strength Index measures the velocity of directional price movement and is commonly used in conjunction with a daily bar chart. However, it can be utilized on a bar chart with any particular time frame. The concept of this oscillator is based upon an idea of an asset being oversold or overbought. Generally, tops and bottoms are indicated when the RSI goes above 70 or drops below 30. Although, failure swings above 70 or below 30 can imply possible market reversal. Similarly, divergence between the RSI and price action on the chart can signal a market turning point. Chart formations and support and resistance often show up graphically on the RSI despite the fact that they may not be apparent on the bar chart. The slope of the momentum oscillator is directly proportional to the velocity of the move. Thus, the distance traveled up or down by the RSI is proportional to the magnitude of the move. The horizontal axis represents time and the vertical axis represents distance traveled by the indicator. The RSI moves slowly when the market continues its directional movement. However, once price is at the market turning point, RSI tends to move faster. Here is depiction of the weekly chart of USOIL:https://www.tradingview.com/x/ew7iVfZG/It is clearly observable that peak in RSI often coincides with peak in the price. Similarly, trough in RSI is often accompanied by trough in the price. Calculation The Relative Strength Index is commonly calculated using the close price of a 14 day period. The equation for its calculation involves several components. These are:• Average up closes• Average down closes• Relative strength Relative Strength (RS) = (average of 14 day’s closes up/average of 14 day’s closes down) Relative Strength Index (RSI) = 100 – Calculation beg…