September 19…)
“The ball rolls fastest at the bottom of the hill.” Pit adage.
Let’s begin with copper again today. Yesterday’s forward guidance and declarative rate cut is probably going to put copper in a leadership role in the metals sector. This morning prices have resolved a 60-day period of low volume horizontal activity higher, making new highs in all fractal samples. I have crammed a lot of comments into the chart below to illustrate how many technical voices are in harmony at the moment.
To the far left the July 18 breakdown void is being challenged and although it may take a day or two, I think it will be negated. Prices are accelerating up; volume and OI are turning higher. Directional movement is solidly positive.
Here’s the Chinese market once known as the LME, just now bumping into the 100 D MA. So… this is not the most optimal entry price. But the wind is clearly at the market’s back. Volume is rising, OI is turning up and the macro thesis related to electricity and the “great transition” is well rested and ready to resume, imo.
Global LME copper inventories
I have learned to observe metals stocks like light from a faraway planet that may no longer exist. In my opinion, we are looking at something that was, albeit updated daily. Today’s prices are not discounting these inventories. Not with this type of technical activity. Prices were doing it in August.
In other markets
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