From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Commodities have been on a tear, with the Bloomberg Commodity Index recently posting its best week since 1970 and the CRB Index rallying more than 25% year to date.
Despite the broad strength from commodities, Dr. Copper – a key economic barometer – has yet to break out like so many of its peers.
After making a new all-time high last Friday, buyers were unable to sustain the move, and price retreated into its former range.
While it’s great to see so many other contracts trending higher, bulls really need to see copper join the mix. If this is truly a new commodity supercycle, it better break out from this consolidation.
It is that important to the overall asset class.
Let’s break down the various technical scenarios for copper’s recent move and discuss what they mean for the entire space. [Read more…]