-- Published: Tuesday, 15 November 2016 | Print | Disqus
‘Doc Copper’ is widely viewed as being able to predict upswings and slumps in the economy of manufacturing and real goods, so we should want to get this one in particular right. The post-election rally in Copper futures is on track for putting up one of the strongest months in the past decade. Buyers have retrenched somewhat in the last few days, but are they spent? This is unlikely in my estimation, since the rally has already generated a robust ‘impulse leg’ on the monthly chart, surpassing the two labeled peaks (see inset) we require. Under the rules of the Hidden Pivot Method, this specifically implies that any pullback short of the 2016 low, 1.9355, is merely corrective and should be viewed as a consolidation for a second, powerful leg up.
It would be more bullish still if, before November ends, the already impressive price bar for November extends above 2015’s high, 2.9610 (labeled #3 in the chart). It would require less than that, however, to trip a long-term buy signal. A print at the green line (2.7841) would do the trick, while also calling for a more bullish bias on trades in various time frames ranging from intraday to daily, weekly and monthly. A $5.33 target would be theoretically in play at that point, raising at least the possibility that the commodity sector as a whole is in for some very significant inflation. This goes directly against forecasts that I’ve stood by for years, including a fall in long-term interest rates to under 1%. As such, I will continue to monitor copper’s charts very closely, since, at the end of the day, I will need to trust what they are saying more than I do my gut instincts. This doesn’t mean I’m about to recant my deflationist views any time soon, only that I am obliged by the technical evidence to keep an open mind. If you don’t subscribe, you can access the chat room and all of Rick's trading 'touts' instantly by clicking here for a no-risk, two-week trial subscription.
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.