Is Copper Sending Historic Bearish Message To Stocks?
Chris Kimble | Sep 20, 2021 10:22AM ET
When copper speaks, investors should listen.
And it may be that time again. The price of copper broke above the $4 mark early this year but it has struggled to maintain its momentum. Now, it is in a multi-month pullback.
Today’s chart is a weekly chart of copper. And as you can see, copper double topped just above $4 back in 2008, leading to a 40% decline. And stocks followed the lead lower.
Copper then rose to new highs in 2011, but struggled to hold above the $4 mark. Is this happening again today?
Early this year, copper tested those 2011 highs at (1) only to see sellers emerge. As well, copper may be forming a bearish descending triangle while testing important support at (2).
If support breaks at (2), copper may fall hard. Will copper do all the talking for the market canary? Stay tuned.
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