Copper Futures Weekly - Last chart for today: Copper is one of...

Copper Futures Weekly - Last chart for today:

Copper is one of the most important Industrial Metals and is often seen as a proxy for world economic conditions, particularly emerging economies which are engaged in infrastructure building and new residential housing.

It’s also an essential indicator for the health of the Australian mining industry which supplies much raw material to emerging economies, particularly China, the largest of the emerging economies.

Copper topped out in early 2011 – at much the same time as our Mining Index. The correlation is clear.

Since early 2012, whenever Copper gets up around the 100-Week MA (blue dashed line), it has reverted to the down side.

The past three weeks’ action is far from encouraging. The Chart hit dual resistance (100-Week MA and horizontal resistance) and created a bearish three-candle pattern. Big candle up, indecisive narrow-range doji candle, big candle down. Bulls still have some hope as the chart is now sitting on a horizontal support line and the 50-Week MA. A break below those, and bulls can kiss this goodbye. Given past history, the 100-Week MA is the strongest influence on this chart.

Further falls and our miners should also fall – for at least a few weeks.