Copper And Steel Testing Important Breakout Resistance
Chris Kimble | Jul 28, 2021 09:52AM ET
Just as the economic recovery is picking up steam, there are mixed messages coming from inflation data as well as the equities (breadth) and bonds markets (yields).
Enter the commodities market. Here, we find several key economic inputs that are elevated, and some that are testing major price inflection points.
In today’s combined chart we look at copper and steel prices on a long-term “monthly” basis. Considering the importance of each, we refer to them as Doc Copper and Man of Steel!
Copper futures prices have been in a 10-year sideways price channel, while the VanEck Vectors Steel ETF (MX:SLX) has been in a 12-year declining trend channel. That said, both have rallied sharply to test long-term breakout resistance at each (1) – and at the same time!
Will Doc Copper and the Man of Steel head lower or breakout to new highs?
What happens next should send an important message to stocks, bonds and commodities. It may also have ramifications for the economy and inflation. Stay tuned.
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