Yellow Flags on Dr. Copper?

From the WSJ Market Beat:

(…) And the eagle eye Pierre LaPointe of Montreal-based brokerage Brockhouse Cooper spotlights a divergence in the copper charts that gives him pause. He writes in a note Thursday:

We note that lately, Chinese buyers of copper have not been as positive on copper in the rest of the world. The following chart shows that there is usually a close relationship between the price of copper in Shanghai (net of 17% VAT tax) and the LME price expressed in yuan. Such a divergence happened twice before, in 2007 and 2008 and signalled a ceiling in copper prices.

And from Chris Kimble:

 

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