TALKING TECHNICALS: On a two-year rising path
The bull market in the US may be mature, but these indices show it is still intact
The Bloomberg industrial metals index tracks the movements in the futures contracts of four industrial metals: aluminium, copper, nickel and zinc. The index reflects the underlying commodity futures price movements only, and is quoted in US dollars. It is a useful index to follow in the context of diversified mining stocks and the general direction for industrial metals prices. The chart has been exhibiting bullish characteristics for the past two years. A clear upward trend is evident, with successively higher lows as well as higher highs. The trend has been tested five times over the past two years, and on each of those occasions buyers have emerged to support the price and push it higher.
So far in 2018 the index has been tracking sideways, with the level of 142 offering stiff overhead resistance. One could argue that there is an inverted head-and-shoulders pattern that has formed since January, with the neckline at that 142 level. A break above 142 on the index is likely t...
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