“Copper is breaking down,” warns MacNeil Curry as BofA’s technical strategist ignores the hyped hopes of newsletter-peddlers who see Dr. Copper’s recent rise as indicative of a Chinese renaissance.
As Mike Tyson so philosophically noted, “everyone has a plan until they get punched in the mouth,” and that 1-2 punch just hit Copper square in the jaw as macro data disappoints and the reality of a vicious circle of unwinding a rehypothecated commodity financing ponzi comes to bear. How much of copper’s rise was artificially-created by CCFDs is unknown but as Curry notes, “the downtrend is resuming” and we will soon find out.
Get ready to sell Copper
Copper is breaking down. The completed 3wk Head-and-Shoulders Top and break of 2.5m trendline support (now 6801) says that the larger downtrend is resuming. A closing break of trendline support confirms, targeting 6321 (Mar-19 low and below).
Source: BofAML
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