It’s been a while since we last looked in on ‘Doc Copper’, which has continued to grind through a bear market begun early in 2011. The price has dropped 46% over that time, but the move is still corrective relative to the bull-market low of $1.25/pound recorded at the end of 2008. What would it take to turn prices higher? The question is important, since even the mere prospect of a full recovery from the Great Recession is certain to be telegraphed by rising copper prices.
Technically speaking, the high-grade contract would come alive on a rally touching 3.2381. If the move were to go slightly higher, exceeding the 3.2790 peak made a little less than a year ago, that would not only clinch still-higher prices, it would also hint of a strong upswing in the world economy, particularly in an otherwise moribund manufacturing sector. Thereafter, depending on how quickly the futures achieve the next threshold, a ‘midpoint Hidden Pivot’ at 4.0573, we might infer an upswing strong enough, even, to float Europe’s distressed boat.
The foregoing is of course speculative, since it’s entirely possible copper prices will relapse, giving up the rest of the 54-cent gain it achieved between January and May of this year. Were that to occur, we could probably tune out the blather about the America’s nascent growth spurt, as well as the supposed likelihood of explicit tightening by the Fed. Take a free trial subscription that will allow you to access not only the touts, bulletins, updates and impromptu trading webinars during market hours, but a 24/7 chat room that draws veteran traders from around the world.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.