Courtesy of Doug Short.
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For the past few years Copper has created bullish wicks along a support line, resulting in copper and stock market rallies. This past week Copper created another bullish wick at this support line. Will this bullish wick cause Copper to rally again off this support line?
The “Power of the Pattern” would suggest that the key to this pattern is that Copper closed below the support line and needs to climb back above the line in short order or a new round of selling will take place in Copper, which could ripple in to risk asset pricing and the metals complex (Gold, Silver and Platinum).
Copper needs to do a “LOOK ALIKE” pattern again. It needs to hold at support! Portfolio construction adjustments could have a ton to do with how ole Doc Copper handles this multi-year support line.
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