Copper Sentiment Plunges,
Critical Price Points for Copper and Crude Oil
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Speaking of Dogs (as in the chart below), Copper comes to mind over the past two years as Copper has lost 25% of its value. The decline of late has few people liking Copper as bullish sentiment has plunged (see inset chart).
I believe Copper is a quality barometer for the global economy, especially in the context of the Emerging markets/China story. Copper is on a three-year support line that needs to hold! With Copper on support and sentiment so low, a short-term rally should not be a surprise.
In the bigger picture, even though sentiment levels are depressed, investors must be open minded to the message for Copper should support give way at (1).
Copper and Crude Oil, two decent indicators for global growth (or the lack thereof), are both on multi-year support lines at the same time. Don't take your eyes off these two because the move they make over the next few weeks could tell us a ton about the world's economic status!
If you are bullish/long the S&P 500 or other broad markets, you want Copper and Crude oil to hold right now!
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