Dr. Copper: From Failed Breakouts to Fresh BreakdownsRisk assets are taking a hit.
The major equity indexes are seeing red. Crude oil is slipping below eighty bucks. And gold is failing at new all-time highs.
Perhaps the markets are navigating the summertime blues – a tune base and industrial metal investors have been humming for months.
Dr. Copper is living up to the trading adage that from failed moves come fast moves in the opposite direction.
The futures continue to fall – down almost 8 percent this week.
That level coincides with a key retracement and former resistance area – a logical place for buyers to step in and defend price.
On the other hand, momentum is drifting toward oversold conditions. If the 14-day RSI drops below 30, I imagine copper will reach four dollars.
