The commodity copper has been ripping higher since the lows in March 2020. At that point, copper-bottomed out at $2.07. Today it hit a high of $4.09. The copper stock chart analysis signals the commodity is nearing major resistance. There are two major levels of resistance coming up, the first one is at $4.16 and the second is at $4.60. In this range, expect as much as a 20% correction on copper. The daily RSI is north of 80 and won’t be able to sustain its rise for that much longer. I will look to start a short position once it gets to that $4.16 level and continue to add up to the $4.60 level.
Copper can be viewed as a growth story for the global economy as well as an inflation metric. It is obviously pricing dramatic growth and inflation in the coming 6-12 months. While long-term I agree with the inflation story and growth in the near-term, I do think these resistance levels give a good point for shorting the commodity for a swing trade. The copper stock chart analysis is clear on copper.
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