Could have — and maybe stocks liked it.
Below look at the price action of Doc Copper over the past 5-years and why price action of late might be something one might not want to hide from:
The 24-month counter-trend rally took Doc Copper to test 5-year falling resistance at (1), where it attempted three times to breakout. While attempting to breakout, Doc Copper created several bearish wicks (bearish reversal patterns) at (1).
The rally pushed momentum to the highest levels since the 2011 peak of late, which looks to be turning lower.
Doc Copper this week, could be breaking 6-month rising support at (2).
Time will tell if ole Doc Copper is sending an important global macro message to stocks and about global inflation or lack of. Stick your head in the sand and ignore the message from Doc Copper? I am not at this time.
The iPath Bloomberg Copper Subindex Total Return Sub-Index ETN (JJC) was trading at $33.50 per share on Tuesday morning, down $1.49 (-4.26%). Year-to-date, JJC has gained 16.44%, versus a 19.67% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.