Base metals were remarkably strong in 2016. After a collapse the year before, they rose sharply, to fully recover their previous losses. But the base metals chart suggest to investors that February 2017 will be crucial.
The recent trends have been encouraging for the industrial metals. A good reason for the surge is impressive data that we have seen lately on the industrial production and manufacturing fronts globally.
Stock market continuing its upward move really worldwide as the buyers pick up where they left off in 2016. Ofcourse, a little stalling at the end of the year, but then we saw the market buyers come back.
It is counterintuitive to think a “momentum failure” set-up in stocks could have bullish implications. The present day weekly chart of the S&P 500 shows an example of the case where momentum fails “to move back into oversold territory”.