It’s an oversold bounce for the copper price, the Copper/Gold ratio and likely other commodities
The daily copper price (futures) is showing a logical bounce from a small support shelf and a deeply oversold condition (RSI).
The Copper/Gold ratio, one of our primary economic signalers, is showing the same. Of course, anything can happen. But on the face of it this chart advises the potential for a fairly robust bounce in the cyclical inflation stuff but also a classic opportunity to take profits, rotate to other areas, go to cash and/or short pro-cycle inflation trades. That depends on who you are. I am probably the profits/rotation/cash guy.
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