Friday, November 17, 2006

Whither To, Copper?

Copper has undoubtedly been one of the big stories in recent commodities boom, due in no small part to the China story. Many analysts are predicting a perpetual bull in the base metals because of the increasing demand from China and other Asian economies.

I've never been so sure. The cycles in these things always seem to have their way in the end.

The question with copper (and other base metals) is; It this the end for now? It is often remarked that base metals are a good barometer for the health of world economies and as such, things look a tad shabby technically. There was an important technical break-down only a few days ago, to arrive at this point of possible support. (well, we're a few ticks above it)

What copper does here will probably say a lot, particularly about copper, but about the the perpetual economic growth dogma that prevails today. (If the economic barometer thing is to be believed)

On the other hand, it could just be speculative heat coming out of the market.

Either way, it's do or die for copper right about here.

1 comment:

sexy said...