coppertube

Doctor Copper Re-Thinks Blue Sky

Copper is pulling back after its breakout to an all-time high

First the disclaimer: I bought COPX & FQVLF after seeing them pull back to their daily chart pattern tops. So if copper actually tops here I’d have made a couple of bad adds to the portfolios. So this is a Swami free zone.

Now on with the post. Truth be told, I’d enjoy seeing the copper/commodity hype and associated promoters get punished almost as much as the Bitcoin bloodbath (BBB) going on. I like seeing market heroes – leading retail herds – debunked. Sorry, but it’s true.

Out of the editorial department and into the (monthly) chart of copper we need to realize that it’s still in-month, May. So the breakout is not a breakout until/unless the monthly candle closes that way in 1.5 weeks. It is also potentially two more things…

  1. A sentinel scouting for future bullish activity, should the global inflation/reflation intensify.
  2. A bull trap and end of the (mini) hysteria.

$3.80 to $4.00/lb. would be the decision zone between a deeper buy opportunity or failure. But for now it’s just a normal recoil after Doc put his periscope above surface to see what’s up there in that blue sky.

copper

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