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Copper Begins To Stir Offering Clues To Overall Commodities

Published 09/15/2016, 12:14 AM
Updated 07/09/2023, 06:31 AM
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Yes, Copper has been a disastrous commodity, largely because it is closely linked to the health of the Chinese economy.

Let's notice on the enclosed daily chart that Copper has been in a period of relative stability between 2.00 and 2.25 for the past 10 months, which represents either a sideways, bearish continuation pattern within the confines of the dominant intermediate-term bear trend—ahead of another downleg, or a multi-month base formation that will challenge key resistance at 2.27-2.32 and break out to the upside into a powerful recovery rally.

It is interesting that 10-Year Yield has climbed above its 2016 resistance line at 1.62%, perhaps reflecting growing perceptions that the U.S. economy and the Chinese economy are in better condition than most people realize, which also is reflected in the lift in Copper prices.

Daily Copper:Daily 10-Y Yield 2012-2016

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