It seems like yesterday that we were being constantly barraged with stories in the media of vandals ripping up and stealing copper pipes, wires, etc. from housing projects, airports and the like. With the price of copper down over 40% from its peak in 2011 those stories are few and far between.

Often called the metal with a PhD. in economics (given its ability to forecast the general economy), copper experienced its largest drop since April 2012 on Friday on China credit fears (the nation's first corporate bond default). Welcome to capitalism, comrades!

Friday's 3.87% drop turned my bandwidth indicator, BWI, up in confirmation. BWI is a simple measurement of the distance between Bollinger Bands (20, 2) overlaid on 14-day RSI. The assumption is that a rising BWI accompanies the true trend and a falling BWI is refusing to confirm the apparent trend.

The lows from Oct'11 and June'13 may provide support 0.15 lower than Friday's close near 3.00. My first price target is 2.96.

Want to know more about the work of George Lindsay? Order your own copy of the George Lindsay Training Course at SeattleTA.

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

© 2014 Copyright Ed Carlson - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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