Copper To Follow The Aussie?
This morning we saw a contraction in the Caixin PMI out of China (49.7 vs 50.1 forecast), with the Australian Dollar moving lower, as a proxy for Chinese growth. Since February 2018 we have seen base metals under pressure, with Copper now triggering a multi-year bear flag formation (Watch out Anglo and Billiton).
On a multi-year ...
Entering short on copper futures with the objective of a downward trend of approximately -10% with a horizon of 6-7 months, as in most commodities, in this case, both precious and industrial metals.
The bearish trend should be strong after the price crosses down to MM210, which is approximately 2.60.
The price could reach -2.40.
An overview of Copper's Primary counts:
I am expecting Copper to continue moving in a corrective manner up to complete an ending diagonal before another crash.
Something I found interesting:
1. Wave 5 (red) looks similar to Wave A (purple), and
2. Wave 4 (red) looks similar to Wave B (purple).
Fruits for thoughts.
Long term (for holding upto 4 weeks) :Copper is at a critical juncture, with the potential of breaking either way. A break below 2.6 will offer a initial target of 2.3. On the long side A break above 2.9 will offer a target of 3.6.
Short term trade: Can short at current levels with the SL at 2.85 for a target of 2.6 as shown in the chart.
Apprarently yes.
But hang on in there.
We are probably going to the 2.3-2.4 level till the end of the year .
Then a bounce in January which will be a great short opportunity .
By this time next year copper will be trading below 2 .
Basically what we saw in copper the last 2+ years since 2016 was a huge topping pattern and the continuation of the bear market ...
With a PhD in Economics, what can Doctor Copper tell us is going to happen next in the economy? Since 2004, the price of copper has exploded above $1.5 a pound, seemingly corresponding with the timing of tremendous growth in the Chinese economy. Now that their economy is slowing down, what can we expect?
Doctor Copper says to expect lower economic activity over ...
HGHG1!
Copper has been bottoming for quite some time. Economic trends are plumbing/housing, electronics, and EV vehicles, so let's step back and review.
* Oversupply for quite some time.
* Copper prices are historically peak in December.
* Housing/construction build rates for SF/MF/5+units is steady Yr/Yr for 5-yr and slight growth if any.
* Electronics ...
Copper is an essential industrial metal used worldwide. Copper prices are followed in financial markets around the globe and the metal is growing in popularity. Copper is widely used in construction and because of its electrical properties is found in wires and circuit boards. Copper is mined in open mines around the world, with Chile and the United States leading in overall copper production. The demand for copper is increasing as countries such as China and India continue to develop, while the supply remains tight. The growing demand and constrained supply is likely to keep copper prices volatile in the near future. Copper prices are commonly quoted in USD.
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COMEX:HG1!
