Last week, we provided our readers with an update on our S&P 500 forecast where we mentioned that the market correction didn’t happen in September / October 2017 but that doesn’t mean it won’t happen. We mentioned the following:
We still remain very suspicious, and though the timing of our forecast is way off, we still believe that a serious spike in volatility with a serious market correction as a result in still in the cards.
A month prior to the article above, Copper price was retracing and we published Copper Retracing. How Low Can The Price Of Copper Fall?
We believe copper has broken out of its long term bear market recently. At the end of July we got a confirmation of the copper price breakout. The start of a new bull market does not necessarily mean that things will go up in a straight line. The bull market can start off slowly similar to the pattern we now see on copper’s chart.
The question becomes: How can we expect a Bullish move in Copper and a US stock market correction?Isn’t there supposed to be a positive correlation between Copper price and the US economical strength?
What is InvestingHaven’s current outlook for Copper price? Still Bullish?
Above all, what do we expect based on intermarket analysis (the basis of our methodology).
These are the questions we will answer in our article today and we start with Copper price action.
Copper Price Action
The chart below covers Copper’s price movement since 1998. It shows clearly the price breaking out of the triangle outlined in pink. It also shows the heavy resistance in the orange area.
Our latest copper price update covered this movement in details. Since then, Copper price started another upwards and is sitting around the 3.20 USD level. We still favor a Bullish scenario and maintain that 3.20 is the crucial level that Copper needs to cross for further upside.
By breaking above the pink trendline, Copper has emerged from a downtrend that dates back to 2011. But that’s not enough, as it is still in a resistance area that has been a support since 2006. So it is to be expected that breaking this resistance might take a few attempts, hence our comment above where we mention that Copper’s Bull market is not going to go up in a “straight” line.
