Copper across the globe is called the leading indicator of the markets given the fact that its heavily used in various industrial activities. In markets anything that becomes accepted widely most of the times ceases to be valid anymore. So lets just see what copper has done for past 3 years.
Copper bottomed in last week of December 2008 with prices at 1.255. From there on it managed to touch 4.649 in February 2011.
Lets just put another market into perspective.
The above chart is of NIFTY CNX India. As you can see nifty already had bottomed out in October 2008 and then made a higher low in March 2010 after undergoing an accumulation phase.
So here we have a market that precedes Dr. Copper as well.
No comments:
Post a Comment