Copper Futures (NYM.HG) have seen three consecutive 'gaps higher' to cross above its 20-day highest high nearing its 52-week high from just a month ago. The market has rallied 3.9% in the last three days to close at $3.9785 per lb. just a hair below its 52-week highest. History suggests that this will not turn into a double top on the chart for NYM.HG, but rather a trend that will soar on to new heights.
Q: How has Copper responded to three consecutive 'gaps higher' that cross above the 20 day high on the 3rd day?
A: According to the nine previous occurrences of this event omitting any repeat occurrences within 10 trading days, EventEdge indicates that NYM.HG has shown a strong bullish edge that peaks 17 trading days after the event. Thus, the projected date for the peak of the bullish edge relative to the current event date (Friday, April 4, 2008) is Tuesday, April 29, 2008.
NYM.HG rallies in 78% of the cases (7 of 9) by an average of 6.2% relative to the close on the event date. The average of the two declines is 1.5%. The overall return of the nine cases is 4.5%, which, based on the close of NYM.HG on the event date ($3.9785), provides a target price of $4.1575.
If you would like to see more details of this historical edge, go to www.markethistory.com
To see this in EventEdge® click here.
HYPERLINK "http://www.markethistory.com/staff/detail.html?s=mickey" Mickey Schoenhals is an analyst with Markethistory.com.
