Copper Showing Strength – Commodity Piece

This Looks Promising

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After a 1.5 month long +15% downside correction, Copper has just shown a sign of hope. This is a pullback that we had anticipated in our previous Copper article (found here).

Technicals

Copper’s pullback did end up reaching the reaching the resistance 1 zone (between $4.29 and $4.35), which we had anticipated that it should act as support (in the previous Copper article). Now that resistance 1 has shown signs of support, going forward we’ll switch “Resistance 1” into “Support” (but we left it as “Resistance 1” in the chart below for reference purposes).

Today’s bounce has been quite impressive, where price has is very close to reclaiming the dotted line at $4.51 (minor resistance/support depending on whether price is below or above it). Since the daily price hasn’t closed yet at the time of writing, we’ll have to wait to see if this level is reclaimed as support. If it does, then that opens the way for a move up to the resistance 2 zone (between $4.78 and $4.84). Nonetheless, the overall day still looks very promising for the Copper bulls, alongside a fresh bullish MACD cross.

Moreover, if Copper is able to close above $4.49, then even the 9, 21 and 55-daily EMAs get reclaimed in this move. The key level to reclaim for Copper for more upside is the $4.87 level, which is the 0.618 Fibonacci retracement level and also aligns with the resistance 2 zone shown in the above chart.

Copper Production

The chart below shows the distribution of Copper production from around the world. Chile (1^st), Peru (2^nd) and China (3^rd) are the top 3 producers, so we’ll be keeping a close eye on the geopolitics and local developments in those 3 regions in particular.

In the next section for our Paid Members, we’re going to take a look at a couple of red flags and a couple of green flags that are currently in place for Copper. This should help our members understand the risk-reward present today. We’ll then cover an interesting intermarket dynamic for Dr. Copper. Lastly, we’ll go through our proprietary Cycles Forecast to see what it’s indicating for the month of July.

NOTE: Our Q3 2024 Cycle Forecasts is now available for sale on cyclesedge.com. We are covering multiple different Indexes, Sectors, Commodities, Cryptos and Leading Stocks using our proprietary Cycles Forecast. Founding Members have already been emailed ALL the Q3 2024 Cycles Forecast. This is one of the many benefits of being a Founding Member, so consider upgrading your membership. In case any of our Founding Members have not received the full Q3 2024 Cycles Forecast set, please reach out to us via email or Substack message. We also have another surprise in the works for our Founding Members, which will be released later in July.

Red Flags