Industrial copper is a leading indicator of the economy’s health and moreover the strength of the world’s industry. The uptrend in copper coincides with the overall uptrend in the world’s industry and economy. This commodity took a hit at the end of 2006, shortly before the start of the 2007 downtrend in all industrial indices and the beginning of the crisis. Copper bottomed in 2009 and began to recover (in three waves – see chart) along with many of the global industrial indices. At the beginning of 2011 copper made an all time high and shortly after began a new downtrend.
We are identifying another possible third leg down to a level around 2.14.
If the downtrend continues, there is a strong possibility for another world recession or maybe even a depression. There is a chance that copper is giving us a signal for a turning point in the world’s industry once again.