The idea behind "Dr. Copper" is that copper is a reliable barometer of economic growth, as the demand for copper tends to rise when the global economy is expanding and fall when it's contracting.
Last December, I shared my bearish outlook for copper futures titled “Fed Fears Inflation, Copper Fears Hawkish Fed”. It was based on the long term map of downward move with a current pullback playing as a junction between large 2 legs down.
The majority of readers expressed a mildly bullish stance, with the belief that the price of $3 for copper futures should hold.
The second largest group had an ultra-bearish outlook, targeting a price of $1.25 during a potential Great Recession.
Let us see in the weekly chart below the updated map.
The copper futures price stalled at the same level after an earlier attempt to push below the red trendline support failed. Continue reading ""Dr. Copper" Prescribes Gold"