copper outlook

Copper is arriving at the point of the year in which weakness usually sets in. If we look at the seasonal chart it indicates that on average, copper peaks around the first week of September and barring a few short cover rallies, usually bottoms in December. This ebb and tide has been transpiring on average for the last 40 years so it is good to keep in mind. It is not a guarantee that price will correct. As a matter of fact, when a seasonal inversion happens, the moves are usually violent. But inversions are the exception, not the rule. The rule is that copper usually peaks in price near this time of year. For those who have played this run, it might be a good time to prune a little.