Copper
This is a key metal to watch because it's very sensitive to economic conditions. Copper is often a leading indicator for the economy — anticipating a recession when it falls, or pointing to a resumption of growth when it breaks out to the upside. Copper is currently trading at about $3.32 a pound. The two signals you want to watch are:
1. $3.60 on the upside,
2. $3.01 on the downside.
In between, copper is neutral short-term. If it closes above $3.60, the metal is off to new record highs, & all is well with the global economy (except inflation!). Conversely, if copper closes below $3.01 a pound, it will likely fall much lower, back to about $2.83 a pound. And it will be a sign that the global economy is heading into a mini-recession/correction.
Oil
Oil is still very much in a long-term uptrend, with higher prices yet to come. But short-term, it's in a very wide trading range defined by $55.76 on the lower end & $69.69 per barrel on the upper side. A close above $69.69 a barrel, & I have absolutely no doubt we will see $80 oil. On the other hand, a close below $55.76 would indicate that oil could fall further, to as low as $44 before the next explosive move up. Because oil has a $14-a-barrel short-term trading range, it can be very volatile, swinging back & forth, yet still be capable of blasting off to the upside.
The same holds true for oil a& energy shares: They are likely to remain in a choppy trading range until oil makes its next move based on the signals I just gave you.
Gold
My favourite watch! Short-term, gold must regain its previous rally & close above the $674.40 level to stay on track for new highs. On the flip side, if gold closes below $653.30, be on the lookout for a decline back to $610 — & possibly even as low as $564 — before the next leg up begins. Between $653 & $674, gold is essentially neutral short-term. So watch those two pivot points!
Stay tuned & watch for these signals, my friends. The horseman are coming.
