Copper may be about to brake below its FIVE year trend line with the panic selling intensifying - down 3%.
Physical buyers will re-enter the market next month, but with the speculators exiting the market, copper's chances of new highs in the forseeable future are slim. Its hard to imagine a prolonged down trend with inventories still tight but a new trading paradigm may have begun. A fall to $3 may happen very quickly.
I would welcome views on the trend line - I am just looking at Kitco's historical chart which suggests $3.20 - $3.00 is the bottom of the line.
Copper was/is the last base metal to be in a long term uptrend? Unfortunately, the AUD cannot offset just dramatic falls in the price. However, even at US$3 Australian copper producers are making good margins.
