Sunday, September 4, 2016

Chart analysis on copper pt. 1

My first investment in commodities was copper. I figured there is a buying signal in the chart so I opened a trade with a leverage of 5. The next morning I already saw a selling indicator on the chart: There was a plateau starting on the upper Bollinger-band.

With low experience in chart analysis I hesitated to close the trade after just a few hours. Turned out the indicator was right and I lost most the (small) profit gained so far. On September 3rd the US market data was published which caused a bounce up - not only of copper. Again there was a selling indicator, since the upper Bollinger-band was crossed. Again I didn't sell, hoping for more quick gains. And again Bollinger was right, my feeling wrong. Copper dropped in the red zone.



Now I am looking for the next selling indicator, willing to listen to it this time. In the above chart I cannot find a signal - neither for buy nor for sell. If I change the time basis for my analysis from 15min to 1h I see a weak buying signal at the end of the last trading day.



The chart is moving away from the lower Bollinger-band and the MACD-indicator shows the right trend. The RSI though doesn't indicate a new trend. Due to the low leverage and the small overall movement of copper I will not gain a lot of profit, but will continue to learn analyzing charts. Please leave your comments and let me know your thoughts!


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