"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 5 hours The Trillion Dollar Space Race
  • 1 day The FANG Stock Investors Should Avoid
  • 2 days Is This The Death Of The iPhone X?
  • 2 days Is London Still The Financial Capital Of The World?
  • 2 days Is Gold Staging A Comeback?
  • 2 days The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 2 days Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 2 days Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 3 days Is Silver Poised For A Massive Break Out?
  • 3 days Meet The Hedge Fund Billionaires Club
  • 3 days The Next Housing Crisis Could Be Right Around The Corner
  • 3 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 3 days Africa’s Fastest Growing Economy
  • 3 days The Blockchain Boom Hits The Utilities Sector
  • 3 days Why Smart Money Is Selling Off Right Before The Bell
  • 4 days Tech Giants Rally Ahead Of Earnings Reports
  • 4 days Global Debt Hits 225% Of GDP
  • 4 days The World’s First Trillionaire Will Be A Space Miner
  • 4 days How Student Debt Could Cause The Next Real Estate Crisis
  • 4 days This $550 Billion Industry Is Betting On Bitcoin

Dr. Copper

In March I wrote two columns about copper. On Friday, March 7 copper broke support at 3.20 and in my column, the following Monday, I wrote that my price target was 2.96. The following week I wrote that "The Coppock Curve has reached a level seen at previous bottoms in copper. Given the proximity of last week's low (2.93) to my price target and the explosion of volume in the copper ETF, JJC, I'd say that was the bottom of the decline in copper."

Since that time the price of copper endured a slow grind upward until encountering resistance at 3.20 (support turned resistance) at the end of May. Last Wednesday copper gapped down 1.65% and, after hesitating at the trendline on Thursday, broke through it on Friday to close at 3.053.

At this point, if copper breaks 2.95 (and that remains to be seen) my price forecasting model will generate a price target as low as 2.62 - 14% below Friday's close. Copper is known for its ability to forecast the broad economy, hence the moniker "Dr. Copper - the metal with a PhD. in economics". If copper plunges to new lows, that can't be good news for the economy.

Copper Chart
Larger Image

 


Get your copy of the June Lindsay Report at SeattleTA.

 

Back to homepage

Leave a comment

Leave a comment