Dr. Copper is Flexing Muscles, Eyes break above Dec 2017 high

Copper has gained 6.3 percent this week and looks set to close above $3.30 (July 2014 high). It would only bolster the bullish technical setup, as indicated by the inverse head-and-shoulders breakout, solid rebound from the falling trend line in March and a rise above the ascending trendline.

Above $3.30, next big resistance is seen at $3.4617 (Dec. 23, 2013 high).

An uptick in copper prices is usually considered a positive sign for the global economy and also for the Australian dollar.

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Gold looks due for correction

The weekly chart below shows a nice symmetrical triangle pattern…Prices breached support of weekly 100-MA (still sloping upwards) and $1214.40 (May low). The metal extended losses to $1204.70 earlier today before recovering to $1212.60.

I feel the metal has found a temp low at $1204.70 and is likely to extend the recovery to $1219 and $1230 levels…. mainly because the 10-year treasury yield is yet again struggling to break above 2.4%.

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Copper – Head & Shoulders inside a bigger Inverse Head & Shoulders

Daily chart

Going by the technical rules, the bulls – inverse head and shoulders – should win the battle because — Head and Shoulders (bearish reversal) works best when it appears at the top of a bull market. while the inverse head and shoulders (bullish reversal) works best when it appears at the bottom of the bear markets.

Over here, the inverse head and shoulders pattern is being formed at the bottom of a 7-1/2 year sell-off…

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