I would like to know what happened to the copper bulls. Where are you hiding? Come out and play all you red metal speculators. Cu is looking for support after all. Maybe you can catch the next big play, or are you afraid of catching something else?China this, inflation that... what happened to the story? So Europe is melting down, causing the predictable flight to USD. Surely the commodity wise guys couldn't have packed it in just because of a little turbulence on the global financial landscape.
Is the much maligned Prechter actually taking center stage for a while? Nah, can't be; everybody knows he's full of it.
To the chart... here is the good doctor on a weekly view. He has come to what had better prove to be support, and commodity and inflation speculators had better hope support holds. Prechter is coming; he is always there, waiting; fright mask at the ready even as copper sits near support, remains AROON weekly trend up and appears ripe for relief. But there is a target down below, at around 2 bucks a pound. Don't think it can get there? Think again.
This blog and especially its resident newsletter state firmly that our future is an inflationary one. But they also state that there will be interim deflationary impulses; in fact, under the current system of inflation-on-demand, these episodes are necessary to promote the next round of inflationary effects so vital to the current system. It will not be surprising to see this chart break that 'copper roof' at around $4/lb. at some point in the next very few years, but the technical bearish divergence and the macro fundamental unwinding currently in play argue that it may see half that level first.
