Courtesy of Chris Kimble.
Has Greece been a good economic indicator over the past few years? Most would say NOT!
Could Crude & Copper be sending a more important global message than what happens in Greece?
A year ago a long-term pennant pattern in play with Crude Oil. Once it started heading south a year ago, it fell hard. Crude Oil’s rally took it 23% retracement level and its 200MA line of late at (1) below. See what is happening now!
CLICK ON CHART ENLARGE
Crude is breaking below this multi-week pennant pattern after failing to climb above Fibonacci resistance and its 200ma at (1).
Copper has been weak for the past few years, breaking below a support line that has been in place for over a decade.
CLICK ON CHART TO ENLARGE
After breaking below this support line, Copper rallied some of late, hitting the underside of the old support line, which is now resistance. This resistance came into play at the $3 level and now its backed off almost 15%.
If Crude Oil and Copper would happen to continue to head south, these leading indicators could be sending a important message about the marco status of the worlds economies.
Full Disclosure…Premium Members are short Crude Oil, own DTO
–
To become a member of Kimble Charting Solutions, click here.
