Now It’s Getting Interesting - Part II June 28th, 2019 by John Gross
The last report observed that most metals held their respective support lines, and a few were testing or breaking through overhead resistance.
Further progress was made along these lines over this past week, and coincidently, various events on the global stage are providing a growing sense of optimism.
First and foremost, it looks like the two Big Guys are almost buddies again, with U.S. / China trade talks expected to resume. In and of itself, this message to the market is clearly encouraging.
And there is more –
The dollar was down a tad again last week, and basis the ICE U.S. $ Index, it is now off 2.2% from its May High.
The Copper Vs Euro chart had their relationship diverging most of this year, but it now looks like they may be getting back together again.
Also, the Spot Comex Copper bar chart has Big Red flirting with its 10 week moving average, and the copper price / inventory chart shows the more recent low points holding, with the price not too far from testing the 52 week average.
Likewise, other metals are also holding their own, with the 260 Brass chart in particular remaining above support, and now looking up.
The caution of course, is that we have been down this ‘more optimistic’ road a few times over the past year, but just maybe, possibly, perhaps, this time it is not just another elusive mirage on the horizon.
Time to be on alert for upside potential.
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