Copper Shows Signs Of Strength But Resistance Ahead
The below is the daily chart of the copper. Its EMAs are in a bullish stack. I.e. the green 5-day EMA is above the orange 13-day EMA, and the orange 13-day EMA is above the black 34-day EMA. The EMAs have good angle and separation and the RSI(9) is above 50 (blue rectangle). These are indicative of an underlying bullish momentum. The base metal has now approached overhead resistance around the 2.850 level (red shaded horizontal). A break above this area would be viewed as bullish. Incidentally copper is used in a wide range of sectors in the economy and is often referred to as “Dr Copper.” I.e. a demand for copper may be an indication of industry strength and even a potential trade deal between the US and China. Although certainly not an infallible indicator it definitely pays to keep an eye on the base metal’s price
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