A subscriber wanted to know what I think about Doctor Copper’s drop today. I have been in and out of my office and when looking for news I was thinking “China this, economy that or deflation the other thing…”. I did not find anything. So chart guy does what he usually does, stares at some charts.
So what have we here? A pretty hard smack down. If it were gold the bugs would be up in arms about an “attack” from nefarious sources. But it’s copper, so… cue the crickets.
As for Kitco’s spot price, your guess is as good as mine as to what’s going on here.
Maybe it has to do with this out of nowhere spike in LME inventory.
COMEX on the other hand shows business as usual, and that business is theoretically bullish for the copper price.
Bottom Line
I have no clue what is going on. But the copper price has not entered a bull market as defined by the previous high and it is now testing the trend breakout from the 2011 high. Support is right here at 2.85. It’s an important juncture, eh?
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.
