It seems like yesterday that we were being constantly barraged with stories in the media of vandals ripping up and stealing copper pipes, wires, etc. from housing projects, airports and the like. With the price of copper down over 40% from its peak in 2011 those stories are few and far between.
Often called the metal with a PhD. in economics (given its ability to forecast the general economy), copper experienced its largest drop since April 2012 on Friday on China credit fears (the nation's first corporate bond default). Welcome to capitalism, comrades!
Friday's 3.87% drop turned my bandwidth indicator, BWI, up in confirmation. BWI is a simple measurement of the distance between Bollinger Bands (20, 2) overlaid on 14-day RSI. The assumption is that a rising BWI accompanies the true trend and a falling BWI is refusing to confirm the apparent trend.
The lows from Oct'11 and June'13 may provide support 0.15 lower than Friday's close near 3.00. My first price target is 2.96.
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