Not Encouraging... November 15th, 2019 by John Gross
The last weekly report observed that precious metals were beaten up pretty badly, with heavy losses incurred by all.
This past week saw the nonferrous complex go through the mill, with each and every one hit hard.
The Price & Inventory report lays out the grim statistics, but a review of the individual charts shows how precarious markets have become.
Copper was unable to sustain a move over $2.70, and is now not far from testing support at $2.60.
Aluminum posted a double top at about 83¢, and is also headed toward a test of support, and the addition of 122,000 mt of excess metal into LME warehouses last week does little to inspire confidence.
Likewise, the rest of the nonferrous family is trying to find their respective footings.
As if to sum things up, the Base Metals Barometer chart shows the overall market posting a triple top, as it tried and failed three times to get beyond overhead resistance.
There was nothing new or different that we are aware of to cause this precipitous decline, rather, it seems markets are weighed down by negative sentiment resulting from a slowing global economy, ongoing, unresolved trade tensions, and a deteriorating political situation unfolding in Washington.
Elsewhere, energy markets bear watching as crude oil is trying to break through resistance, as natural gas did two months ago.
And in the ‘Believe It Or Not’ category, equity markets continue rising, blissfully unaware of the worries of the world, as new record highs were posted on Friday.
Taking it all together, we wonder again if ‘the market is always right’.
And finally, if you would like to see the slides that accompanied our presentation at the American Copper Council meeting last week, just send a note and we will get them off to you.
View Charts (PDF)