…the gold/copper ratio:
A whole range of chartists currently insisting that copper “cannot stay this low” and it’s basically because of this chart. Which they did not predict and therefore causes them psychological pain. Because, we’re told “this ratio can’t stay this way” and “something’s got to give” and mutterings of that ilk.
Yes it can stay up there. Copper can sell at $2.50/lb for the rest of the year and gold at $1.3k/oz or so (or copper at $2.30 and gold $1.2k., or $2.70/lb and $1.4k. etc). Forget the stupid squiggly line, tell me why those two components cannot possibly remain steady at their new price brackets.
One thing’s for sure; whatever gold and copper do in 2015, it won’t be because some randomwalk charty dude who makes a living by selling his snake oil feels the ratio chart is esthetically displeasing.