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…
- A sentinel scouting for future bullish activity, should the global inflation/reflation intensify.
- 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.
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.