A further test of the lower channel harmonic at that time would be additional evidence that the move had run its course, but it will be important to monitor other exhaustion signals in case price doesn’t quite reach that area.
Many analysts consider copper to be a bellwether of trends in the global industrial economy. A decline between now and 2016 (or later) suggests that the market is pricing in expectations of slowed growth in China and related economies. \
An eventual rebound in copper prices might presage an end to the current phase of stagnation in China’s economy, but we probably will have to wait more than a year for signs of recovery to appear.
Although we have mainly been charting the big-picture developments for copper, we follow several other markets on faster time frames ranging from weekly to intraday. Follow us on Twitter to get timely market observations and announcements.
Twitter:Â @TradingOnMark
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
