Welcome to my new blog "3WA" which stands for Three Weeks Ago. I will highlight one point I discussed in The Cascade and comment on what has changed over the past three weeks and what it means. This week I will cover base metals.
Three weeks ago in The Cascade Volume 14 - I highlighted $DBB - the base metals ETF. At the time of writing the price was right at a crucial horizontal level as well as at the 200 week moving average.
Here we are three weeks later and price is still right at its horizontal level and the 200 week moving average after a flash down a couple of weeks ago into a demand level. When zoomed in, price is currently under the 200W by a few cents as of now.
Much of this price action has been driven by copper, which is fighting against a slowing China and slowing global growth.
As you can see, copper is at a crucial horizontal level after a violent dip lower, which tested the 200W. Markets have been bombarded with Chinese stimulus headlines over the past couple of weeks which may be lending some support to copper prices - but it appears to me that the amount of stimulus and where it is directed is unlikely to create enough demand to overcome the slowing of the global economy - especially in China.
That is all for this week and the first 3WA.