Copper floored?

Copper remains on the edge of putting in a monthly close under the hugely important $3 threshold. June saw further weakness, with a brief hit of 2.98. If the main US market follows the lead of other world markets, then Copper could be trading in the low $2s within a few months.

Copper, monthly

Summary

Copper is always an important commodity to follow, and as many recognise, it can often be a leading indicator of underlying economic weakness...or strength.

Since the main commodity index/basket peaked in early 2011, Copper has similarly struggled, falling from 4.65 (Feb' 2011) to 2.98 (June 2013).

*many of the price charts for the mining stocks look just like the Copper chart. This includes the bigger, and more stable companies, such as FCX, and SCCO.


So, where next for Copper?

If the main US markets do see a few months of weakness into the autumn, then Copper will probably put in a monthly close <3, and I'd have to expect a swift..and sustained drop down to the low $2s.

I certainly don't expect <2, that would be a real surprise.

For the commodity bulls, only if Copper can break back into the $4s, can the inflationists out there start to get confident.

--
more later in the evening, looking ahead to tomorrows jobs data