Re: Copper 02 (Nov 12 - Dec 17)
Posted: Wed Aug 30, 2017 5:05 pm
End of the rally?
The metal has been climbing thanks to a weakening dollar and Chinese demand, but Garner thinks copper may be nearing the end of its rally.
"When you check out both the weekly and the daily charts for copper, you see a bunch of indicators that suggest it's already way overbought," Cramer said.
He added that the Relative Strength index, which tracks changes in price movements, is running high on both charts, which typically means a correction is on the horizon.
"Here's the bottom line: The charts, as interpreted by our go-to commodities person, Carley Garner, suggest that crude oil could soon fall off a cliff while copper might be running out of momentum," Cramer said.
"Neither of these is what I'd call a good sign. You know what? I'm on board with both calls."
Source: CNBC
https://www.cnbc.com/2017/08/29/cramers ... yptr=yahoo
The metal has been climbing thanks to a weakening dollar and Chinese demand, but Garner thinks copper may be nearing the end of its rally.
"When you check out both the weekly and the daily charts for copper, you see a bunch of indicators that suggest it's already way overbought," Cramer said.
He added that the Relative Strength index, which tracks changes in price movements, is running high on both charts, which typically means a correction is on the horizon.
"Here's the bottom line: The charts, as interpreted by our go-to commodities person, Carley Garner, suggest that crude oil could soon fall off a cliff while copper might be running out of momentum," Cramer said.
"Neither of these is what I'd call a good sign. You know what? I'm on board with both calls."
Source: CNBC
https://www.cnbc.com/2017/08/29/cramers ... yptr=yahoo