Gavekal Capital: Dr. Copper Is Down, Not Out

Tuesday, May 19, 2015

Dr. Copper Is Down, Not Out

While it is too early to really get our hopes up, it is worth noting that Dr. Copper has clawed its way back above the long-term support that it violated earlier this year:


And though its efforts to overcome the downtrend seem to have faltered a bit today, the metal with a Ph.D in economics has clearly taken a peek at the view out above resistance:


As we said, this does not guarantee a sustained breakout (especially in light of our discussion about its rally and the relationship with Chinese growth)-- but the forces of accumulation have to start somewhere...