COPX - Global X Copper Miners ETF (NYSE) 17 November Chart
Commodities Copper had a pseudonym and is widely known as Dr. copper. a barometer or an indicator used, assessing whether an economy is in a recovery or downturn mode.
Investopedia define 'Doctor Copper', Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown.
So is Dr copper indeed a correct indicator of measuring the economy's health check where there are conflicting reports of economic activity growth slow down, let's look at the chart of Copper. Below links are of recent extracts that point to economy activity slow down.
Market is always 6 months to 1 year ahead of economic fundamental and is quoted by investment expert like Asian investment guru Mr. Hu Liyang. If a stock market register sub-par below performance how do we expect that it will translate into consumer spending and register high domestic demand growth, therefore the stock market performance is also an indicator of economic growth or slowdown.
Based on Technical Analysis (TA)
Copper all time high is around 4.478 in Feb 2011., Nov 2015 low is around 2.045, June 2008 high 3.896, Dec 2008 low is 1.395.
For historical prices from year 1989 to 2017. Please refer to the link below
Black color line displays a potential large rounding bottom formation. classical support neckline at 2.50 and 1.40 respectively.
blue color line refers to a falling wedge chart formation.
red color line refers to a price channel line and it shows a target of 4.00 resistance couple with the orange line become a large ascending triangle line.
base on TA price pf copper is expected to challenge 4.00 1st level resistance 4.50 2nd level resistance of Feb 2011 high and 5.00 of new high and all time high. Immediate price target of 3.50 should see swing target setup fulfill and small rounding rounding bottom price target fullfill and a potential inverted head and shoulder chart formation.
Commodities Copper had a pseudonym and is widely known as Dr. copper. a barometer or an indicator used, assessing whether an economy is in a recovery or downturn mode.
Investopedia define 'Doctor Copper', Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown.
So is Dr copper indeed a correct indicator of measuring the economy's health check where there are conflicting reports of economic activity growth slow down, let's look at the chart of Copper. Below links are of recent extracts that point to economy activity slow down.
Market is always 6 months to 1 year ahead of economic fundamental and is quoted by investment expert like Asian investment guru Mr. Hu Liyang. If a stock market register sub-par below performance how do we expect that it will translate into consumer spending and register high domestic demand growth, therefore the stock market performance is also an indicator of economic growth or slowdown.
Based on Technical Analysis (TA)
Copper all time high is around 4.478 in Feb 2011., Nov 2015 low is around 2.045, June 2008 high 3.896, Dec 2008 low is 1.395.
For historical prices from year 1989 to 2017. Please refer to the link below
Black color line displays a potential large rounding bottom formation. classical support neckline at 2.50 and 1.40 respectively.
blue color line refers to a falling wedge chart formation.
red color line refers to a price channel line and it shows a target of 4.00 resistance couple with the orange line become a large ascending triangle line.
base on TA price pf copper is expected to challenge 4.00 1st level resistance 4.50 2nd level resistance of Feb 2011 high and 5.00 of new high and all time high. Immediate price target of 3.50 should see swing target setup fulfill and small rounding rounding bottom price target fullfill and a potential inverted head and shoulder chart formation.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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