Intel Corporation and iPath UBS Copper ETN: Technical comments on equities and ETFs in the news
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Intel Corporation (NASDAQ:INTC) – $20.26
News event: Intel raised its dividend by 12%.
Technical and seasonality comment: Intel currently has a mixed intermediate technical profile. The stock recently broke two support levels at $18.75 and $18.27. On the other hand, the stock remains above its 200 day moving average and recently moved once again above its 50 day moving average. Its short term technical profile is more positive. Short term momentum indicators (MACD, RSI and Stochastics) are recovering from oversold levels. Support has developed at $18.17. Resistance is at $21.11. Seasonal influences are positive until mid January. A break above resistance implies intermediate upside potential to $24.50.
Chart courtesy of StockCharts.com www.stockcharts.com
iPath UBS Copper ETN (NYSE:JJC) – $45.72
News event: Copper breaks to a 13 month high
Technical and seasonality comment: iPath UBS Copper units track the price of copper. Units broke above resistance this morning at $42.36 to reach a 14 month high. Short term momentum indicators (MACD, RSI and Stochastics) are recovering from oversold levels. The breakout coincides with a breakout by spot copper prices this morning above resistance at $3.06 U.S. to $3.10 per lb. Next intermediate technical targets are $49.00 for JJC and $3.55 U.S. per lb. for spot copper.
Seasonal influences for copper are positive from the end of October to the end of March. Copper has gained in 9 of the past 10 periods for an average gain per period of 17.8%.
The breakout by copper today is expected to favourably influence prices of base metal equities and Exchange Traded Funds. They have a period of seasonal strength from mid November to the beginning of May.
Chart courtesy of StockCharts.com www.stockcharts.com
Chart courtesy of StockCharts.com www.stockcharts.com
Don Vialoux
Director of the Canadian Society of Technical Analysts
Comments offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. An attempt to provide accurate data has been made, but accuracy is not guaranteed. Comments are from Don Vialoux and not from the Canadian Society of Technical Analysts.
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November 16th, 2009 at 11:16 am
Hi Don,
I don’t know if this is the right forum but I have a couple of questions. I am interested in buying into this seasonal copper play.
1. is there a way for a small investor is hedge against the US $ if I buy US stock, ETF’s etc
2. Is there an EFT tracking copper mining, preferably Canadian
thanks, Bill
November 16th, 2009 at 3:17 pm
Don your outlook on RIM for the next 12 months? I still think this is a great company.
November 16th, 2009 at 3:19 pm
Hi Don
Do you still see a correcting coming any time soon? or do you think the previous few 5-10% downturns were enough of a correction and the tsx will continue to climb next year.