CME Copper futures - Weekly (the bigger picture)
Has been looking really positive since the very high volume breakout in early November 2016 (arrowed), which understandably drew out a lot of supply and forced a closed in the middle. For me though, it was the much narrower downbar on even higher volume that followed, which told the real story, especially when the next bars was up........just think about it for a minute........ a Big Strong breakout bar on very high volume (much higher than the average), followed by a narrower spread downbar which didn't lose much ground at all on even higher volume, and the next bar is up in response (or as a confirmation). The serious question to ask is "why.....on all that volume.....could the downbar not lose much ground below the previous close.....and then next bar be up"
Anyway, since then price has continued with the absorption process & has not even looked like breaking below that initial downbar so far, and this week price popped its head above the high of the breakout bar for a bit of a look........challenging the recent highs albeit on only average volume (which infers that price only rose like that because selling pressure was quite low, and it was not driven up with serious intent). The next bar will be quite interesting now, to see if there is any momentum generated towards the upside, or if price will just drop back into the range again.
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