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2 Chart Pairs Signaling Bullish Stocks, Bearish Metals

Published 11/12/2013, 02:11 AM
Updated 07/09/2023, 06:31 AM

Chart 1: Further breakdown in the yen could lead to higher stock prices:
Nikkei + Yen Daily
Here are some interesting chart combinations I am following. The first one, seen above, is between the Japanese yen and the Nikkei (Japanese equities), but to be quite frank, the yen tends to correlate in the opposite direction to just about all equity markets globally.

Which brings me to the main point... it seems that the yen wants to break down off the the 8 month consolidation triangle it's been following. If this does occur, equity markets in Japan as well as globally, could get another boast toward higher highs.

Chart 2: Both Copper and Silver have been struggling as of late:
Copper + Silver Daily
The second combination of charts I am following is in the metals sector, especially between Copper and Silver. After intermediate lows were established in late June of this year for both metals, the bulls have not been able to produce any substantial headway.

Copper, just like Crude Oil, is a very good barometer of emerging market economic growth. Both of these commodities have been struggling. Copper has failed to advance since August of this year and has moved sideways at best. Personally to me, it is looking rather bearish in the short term and could brea down soon. Furthermore, just like the Japanese yen, Silver also seems to be ready to break down out of its triangle pattern.

Keep a close eye out on these combination of charts. Short term traders might find that equities are looking bullish, while the majority of foreign currencies and metals are looking rather bearish right now.

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