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Gold & Silver pushed below support recently and now Copper is working on a similar breakdown. In the past Copper weakness was a message of a global slowdown and a sign that “Deflation” was taking place.
The Power of the Pattern suggested in the chart below (published 5 weeks ago) that “Global Economies looked to be Rolling Over and that at least, short-term de-flation was at hand!” (see deflation post here)
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Investors often look to precious metals as Safe Havens….During periods of “De-Flation” metals often deflate in price as well.
The breakdown of Copper and the CRX Commodity index does increase the odds a good deal that softer global macro conditions are in store.
Is that a head&shoulders on copper (and a little bit on the CRX too) ?
In that case, is it still time to go full on with SMN?
Am I correct that with a head at 450 and a neckline around 300, HG copper could go back to 150?