COPPER Weekly Chart Sideways Symmetrical Triangle

It seems like copper, oil and commodities are heading higher day after day recently as the Fed creates new asset bubbles due to money printing, however, note that despite all the upside euphoria, copper has not yet broken out above the top rail of the sideways triangle. The thin purple line shows that price broke out of the alternate triangle pattern, but returned back inside during the November bottom. The blue sideways triangle now takes precedence. Equity bulls must see copper move higher from here and the wine will flow like water for long traders. Equity bears need to see copper weakness appear now and the top rail of the triangle holds as resistance, and price returns lower into the apex of the triangle. The moving averages and indicators verify the overall sideways nature of price over the last year or more.

The stakes are enormous. The thick blue line shows a one dollar move is coming. Thus, a breakout to the upside here targets 4.6-4.7 and would be in concert with far higher equity markets and yields moving higher and a move towards inflation ending the last few years of disinflationary funk. If price moves lower and returns to the inside of the triangle favoring bears and collapses out the bottom at 3.5, 2.5 would be targeted which is the disinflation and deflationary outcome that Keystone continues to forecast. This move represents a stagnant global economic environment and a final flush lower to cure the over-leveraged economy that ran rampant from the 1990's thru 2007. Lower copper would be in concert with a few years forward of flat euro and dollar currency moves and flat Treasury yields. Watch copper like a hawk. Q1 2013 is shaping up to be a historic turning point in world economics and trading. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.