This week, our focus shifts to Copper, a commodity closely tied to economic activity. The relationship is straightforward: higher economic activity drives up copper prices, while a slowdown leads to a decline, which is why Copper is often referred to as “Dr. Copper.”
Are you wondering when to buy Copper as an investor? Explore our tailored services and join our growing community of do-it-yourself investors who have successfully navigated the market with our guidance.
Premium Guide
Advanced Investing Signals
$139 / Month
Basic Guide
Basic Investing
Signals
$49 / Month
Simple Guide
Selected
Signals
Free
Congratulations! You’ve discovered your new free financial guide. Simply sign up for our most popular service, our Simple Guide.
When we examine a long-term chart of copper prices dating back to 2018, we can observe a rising trend channel that has contained prices for several years.
The lower trend line of this channel has provided strong support on multiple occasions, particularly in 2022 and 2023. Earlier this year, in April and May, copper experienced a significant spike in prices, only to retrace back down shortly thereafter. This recent decline has brought copper back to the lower trend line of the channel, placing it in a critical position. If this lower trend line once again acts as a support level, it could present an excellent buying opportunity, potentially signaling a strengthening economy in the near future. However, if copper prices break below the trend channel, it may suggest further economic weakening ahead. As always, it’s important to monitor this closely and adjust strategies accordingly.
The world of finance is complex and includes many technical terms. For explanations of these terms, I recommend using the Investopedia dictionary.
Leave a Reply