🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Is Copper Signaling Trouble for the U.S. Economy?

Published 29/05/2023, 08:15
HG
-

There’s been plenty of uncertainty in the air. From our economy to the stock market to politics to war abroad, consumers are concerned.

So we continue to look for facts, signals, and clues in the financial markets to tell us how to trade… but also what may come next.

Today, we look at a long-term “monthly” chart of Copper Futures. When Copper is strong, the economy tends to be stronger. When Copper is weak, the economy tends to be weaker.

Doc Copper Monthly Chart

As you can see, Good ole Doc Copper formed yet another double-top pattern (bearish) before weakness ensued. This weakness has Copper working on a dual breakdown of support at (1).

This support is marked by the 38% Fibonacci level along with the rising uptrend line. So it’s important. Currently, the price of Copper is breaking down through this support at (1). And this is concerning.

Historically soft copper has translated into a softer economy going forward. Stay tuned!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.