Copper price pokes below the daily SMA 50
Doctor Copper is taking out the 50 day average this morning. Now, if the FOMC were not conspiring meeting to manage macro signals and thus, our expectations, the move might be more trustworthy.
Is it hedge funds getting weak kneed about inflation and by extension the Fed’s resolve to continue the economic reflation? Is it some machines gone wild, muck raking for absolutely no reason other than it’s FOMC week and well, that’s always a bit of a circus?
Taper talk is all over the financial media, growth has been out performing value and inflation/reflation-sensitive stuff lately.
Two things about copper’s daily chart…
- It’s still technically in a normal consolidation at the SMA 50, just a more challenging one than those that preceded it, and…
- A test of the SMA 200 could get the reflated herds running and the media touting the end of the inflation (as I assume the Fed wants it, since they need the cover of dis-inflation in order to continue to inflate). Such a test would be a test of copper’s major uptrend.
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