The copper price lurks below the SMA 50
Will we install a new happy face or a third pukey face? The mystery of Doctor Copper’s correction continues. The major daily trend is up because the up-trending SMA 200 has held so far. The SMA 50 stands in the way of a resumption of that trend just yet.
This is of course just one component of a macro that is going to go one way (resumed inflationary reflation) or the other (disinflationary and ultimately, liquidation). But it’s a component that a lot of people (and machines) watch for macro economic signals. Hence its honorary PhD in economics.
Complicating matters is the state of LME warehouse supply. LME levels were tapped out back in the spring but since then there has been a big spike in inventory that has logically gone along with the rise in the copper price. So it’s no longer a bullish tail wind from this perspective for the good Doctor.
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