Purchaser sign: a bullish outlook
Yesterday I additionally wrote about copper. The latter served because the canary within the coal mine – it was the primary asset that debunked the H&S sample and what I anticipated grew to become actuality:
Curiously, copper has already reversed its breakdown under its head-and-shoulders sample by way of day by day closing costs. As a result of copper typically strikes in step with the valuable metals sector, it is a bullish signal – not only for copper, but in addition for gold, silver and mining shares.
What does all of it imply? It means the valuable metals sector is prone to transfer larger within the close to time period, and the identical goes for copper. Sure, the latter has at the moment encountered a descending resistance line, however since it’s so extremely (and negatively) correlated with the USD Index, I nonetheless assume {that a} new transfer decrease within the USDX will set off a brand new transfer larger in copper.
Needless to say simply as December’s rally took copper above the falling resistance line that existed on the time, we are able to have the identical factor now, and it may be adopted by the identical form of motion. One other wave decrease. Actually, for my part that is the possible consequence. The rallies in PMs, mining and copper, just like the rally within the USD Index, are corrections and never crucial medium-term strikes in these markets.
Lastly, we’re internet hosting a webinar this Thursday (10:30 AM EST, which is 4:30 PM CET and seven:30 AM PST) with Rick Ackerman and I invite you to Rick’s, Dominik’s (our content material director and host of the webinar) and myself to affix in to take part.
The webinar is free and the purpose is to offer real-time worth. Rick’s strategy is mostly extra short-term centered than mine, whereas in his he focuses on gold and bitcoin premium newsletter about Golden MeadowIn the course of the webinar he solutions questions and requests to rapidly analyze different markets or shares. So once more, you might be cordially invited – please reserve your seat today.