The idea behind “Dr. Copper” is that copper is a reliable barometer of economic growth, as the demand for copper tends to rise when the global economy is expanding and fall when it’s contracting.
Last December, I shared my bearish outlook for copper futures titled “Fed Fears Inflation, Copper Fears Hawkish Fed”. It was based on the long term map of downward move with a current pullback playing as a junction between large 2 legs down.
The majority of readers expressed a mildly bullish stance, with the belief that the price of $3 for copper futures should hold.
The second largest group had an ultra-bearish outlook, targeting a price of $1.25 during a potential Great Recession.
Let us see in the weekly chart below the updated map…
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