Dr. Copper Is Back! – Commodity Piece
The Economy Is Recovering Says Copper
Our Commodity piece have regularly covered Uranium, Gold, Silver, Oil and Natural Gas. Now we’re adding one more key Commodity to the mix – Dr. Copper. This is the Doctor who lets us know how the worldwide economy is typically doing, especially the manufacturing sector due to its high usage in infrastructure and machinery-related uses. An important fact to note is that China is the world’s biggest Copper consumer, so when Copper is doing well, it usually means the Chinese economy is on the verge of a recovery at the very least. This makes sense as Chinese economy enters deflation, giving it the “right” to finally print and provide ample stimulus to pump up the economy. This is a contrarian bet, but one we’re willing to bet on given the sentiment towards the Chinese economy and the signs that Copper is giving out.
Currently, Copper is fighting its 1st resistance level of $4.29 after breaking its resistance zone (now support zone) between $3.92 to $4.02. This is an important resistance because a break above would put $4.50 and $4.78 on the table, but a rejection would put a retest of the support zone back in play. Which one is it going to be? Find out our data-backed bias based on technical, intermarket analysis and our proprietary Cycles Forecast in the next sections.
Of particular note, Copper bounced off a key uptrend line (barring the false breakdown during C19) and is currently in bullish mode with momentum (MACD) pointing towards upside, and RSI still having room to run-up.
Since this is a new Commodity we’re covering, our paid members get rest of the article where we cover some very important intermarket analysis, an important fractal pattern, and Copper’s Cycles Forecast (based on our proprietary model) until mid-May 2024. Please consider signing up to join our community, which has only 1 goal in any market environment: To Make Money!
We just released our Q2 2024 Cycles Forecast (on https://cyclesedge.com/) for multiple different asset classes and equity names. The introductory article for the quarterly Cycles Forecast can be found here. Please note that our Founding Members have now been emailed these Cycles Forecasts (the full deck covering every name!). If you would like your copy earlier for the next quarter, please consider upgrading to a Founding Member status on our Substack.