We know that China has been very weak of late, and the charts of copper and premier copper miner Freeport McMoRan seem to be reflecting that global softness as well. On the weekly chart of FCX above, note how unlike the V-shaped move off the low-$30′s in 2011, this time around price is leaning down against this major support area. Simply put, bears will argue the current technical setup is a bear flag waiting to break much lower for a major crack, while bulls are arguing this is a sound, coiled base off of which we will spring much higher. Bears will also argue that a major head and should top is in play, but of course confirmation below the low-$30′s is required.
I do not see much of a trade here yet, as copper appears to be reflecting the broad market indecision we have seen in many areas.