Commodities have been an important theme within the financial markets and economy for several months. The price rally has ushered in inflationary winds not seen in 4 decades.
But the rally has slowed to a consolidation… and in some commodities a turn lower. While it doesn’t look like inflation is going away any time soon, it does look like Copper could be in trouble.
In late March we highlighted the potential of a double top formation for Doc Copper.
And today, we revisit and update that chart (see below).
As you can see, copper has reversed lower and broken through its 2 year rising up-trend line. This is concerning… and that concern will likely be realized if copper doesn’t hold neckline support at (1).
That support comes in at the $4 level. And if it fails to hold, Doc Copper could experience much lower prices. Stay tuned!