Gavekal Capital: Copper Breaking Through Important Support as USD Continues to Surge

Monday, September 22, 2014

Copper Breaking Through Important Support as USD Continues to Surge

Copper, after having been turned down by the falling trendline last week, is breaking down through the upward sloping support line today. The technical pattern formed in copper is known as an ascending triangle pattern, and breaking below the rising support line is generally taken as a bearish signal. Copper prices are taken by many as a thermometer of global economic activity, so the breaking down of copper could be interpreted to mean economic conditions are deteriorating.

The US dollar, on the other hand, continues to surge higher as the second chart below shows.

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