Thursday 14 June 2012

Dr Copper - the deflationary outlook

Copper is something I forget to keep an eye on (I'm usually more focused on what Gold or Silver are doing!), but I was reminded of it just last evening.

The big question out remains whether a secondary deflationary wave will hit the world economy this year and into 2013. I sure can't guess yet, but we'll likely find out in the few months.

For the deflationists out there...this would be the outlook...


Copper, weekly, 8yr


Summary

A move down to the primary target zone would probably equate to sp'1100. The secondary level would probably mean at least sp'800...possibly an all out test of sp'666 - but not until 2013.

Its something to at least briefly ponder over.

Good wishes for Thursday trading.