The broader commodities market is enjoying a multi-month rally that has seen momentum carry over into early 2021.
One area of commodities that’s seen a big lift is the metals space. We hear a lot about gold and silver, but how about copper?
One look at today’s chart and it’s clear that Doc Copper is on fire.
The long-term “monthly” chart highlights Copper’s multi-month thrust higher. It also shows Copper futures prices hitting a significant band of triple resistance this month. Line (1) has been tested several times over the past 15 years, while resistance at (2) is made up of 61.8 Fibonacci resistance as well as the top of the rising channel.
So what will Doc Copper do with this 800-pound test of resistance?
Well, if copper succeeds in breaking above this band of resistance, it will likely mean blast off for copper and copper stocks like Freeport McMoran (FCX).
What is the message if Doc Copper starts seeing selling pressure at (2)? It would suggest that the counter-trend rally is running out of steam and that numerous commodities could experience short-term selling pressure. Stay tuned!