If the global economy, in general, and the US and Chinese economies, in particular, are in such promising condition, then why do the copper and silver charts look so ugly?
From my perspective, all of the action in both copper and silver since last September-October represents a consolidation after a corrective down leg. In other words, a digestion period prior to the resumption of corrective weakness.
If such a scenario is unfolding, then copper will break support at 3.485 on the way to a retest of 3.00-2.99, while silver will test and break multi-month support at $26.15/00, on the way to $20.00. ETFs to watch include the iShares Silver Trust (SLV).
What will the global economy look like then?
