Copper Inventories

As you probably know low stocks equals less supply and thus the price of copper is normally inversely correlated with LME copper warehouse stocks. The LME copper warehouse stocks level are declining consistently since February 2007, already down 50%. Copper stocks are down from about 200,000 to. 105,475 tonne (July 6).


Technically the copper chart looks fine , a-b-c 3 waves correction then an impulsive rally (wave i) , wave iii is currently underway, PPO , RSI up trending bullish. Potential inverted head shoulders pattern with a price objective of 520.

Copper Charts

Copper is one of the most important tradable base metals. The price of copper topped at the second quarter of 2006 after going extremely parabolic and registering an all time high. I have warned about that extreme situation at least two times.

See:

Copper Futures , Comex : HG & Wednesday, May 31, 2006
Copper HG COMEX Futures

One of the most important indicators for the price of copper is the LME stocks levels which seems to bottom and are up more then 100% since mid 2006.

Currently Copper is oversold and I would like to suggest 220 and 190 as important price levels, on the 50 years chart the 145 seems to be the most important price level.

GFMS Base Metal Index Waves Analysis

GFMS base metal index is based on the official London Metal Exchange - LME - cash settlement price for primary aluminium, copper, lead, nickel, tin and zinc. The index is an average of the six prices with equal weighting given to each of the six metals. The index is based on January 4th 2000 = 100.


Click on the chart below to enlarge

Copper Futures , Comex : HG

Copper futures and spot have really gone extremely parabolic, registering ~ 400% price appreciation since the bear market bottom. Amazing!















Gold and Silver Charts