Copper Update: 24th Aug 21
Following its progress post our last update on Copper on 19th August, we note that metal appears to have completed its corrective wave down.
Caution — if it does break back below its 200DMA again, then our conclusion is obviously wrong. We cannot be too careful these days. But for now, we shall go with it until something changes.
The rally in the past day or so coincided with news that Chinese copper imports surged in recent days, possibly reflecting a drawdown in their own domestic reserves (recall Beijing had released some of its reserve stocks in a bid to tame prices). This lead to the largest withdrawal of the metal at the LME warehouses. The case for Copper is well documented by now, so let’s spare ourselves here.
If ATEC’s scenario and framework is right, we should see new highs for it. There are obviously several names associated with the metal to express this so please, take your picks.
Good luck!
