“Dr. Copper’s” Prescription Proves Effective

“Dr. Copper’s” Prescription Proves Effective

Posted On May 2, 2023 10:08 am

In February, I presented my analysis of copper and gold/copper price trends in a post titled, Dr. Copper Prescribes Gold. Now, it’s time to update both charts.

In the previous analysis, most readers preferred a conservative outlook for copper futures prices, predicting a drop to only the equal distance in the CD part, which is $2.45. Since then, the price has declined, but not as rapidly as anticipated.

Let me show you the updated copper futures chart below.

As expected, the price action on the Rising Wedge pattern’s support played out in textbook fashion, with the price breaking below it and then spiking up to retest it before continuing its downward trend.

The price has now reached a double support zone formed by the purple moving average and the black horizontal trendline, between the $3.78 and $3.83 levels.

The RSI indicator has already turned bearish by sinking below the key support of 50, which could further support the breakdown of the aforementioned double support.

The target levels remain unchanged as none of the previous peaks have been surpassed. The nearest target is at $2.45 (CD = AB), followed by $2.02 (large 2nd move = large 1st move down), and the farthest target is the valley of 2008 at $1.25.

The recent release of US GDP data, which was well below expectations, and the contracting Chinese manufacturing statistics are supporting a…

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