But notice the upper RSI portion of the chart: relative strength is at the lower end of the range and that has often preceded sharp near term bounces. An even stronger indication that a bounce might be in order is that thestreet.com's Jim Cramer said earlier today that copper is a "fiasco" which he wants nothing to do with (Click here for the Cramerian fun and games). Wow.. sounds like it's time to load up!
Ok, seriously now, there is indeed a supply abundance in the short dated contracts which is one of the reasons that Cramer ticked off and is indeed a good reason why Copper could test the 300 day - something it hasn't done since 2005. So while I think it is looking like we're heading for a test of the 300 day moving average, I wouldn't be surprised to first see a brief rebound, or dead cat bounce.
**CEOs and companies named in this post while resembling real life, outrageously paid and retired incompetent boobs who were let go from poorly run real world drug companies were purely fictional and coincidental.