Copper on the rise

12 Oca 2023

After the range breakout on Tuesday, Copper has been rallying higher.

Traders refer to this market as Doctor Copper since it indicates economic health. I plotted the correlation to the S&P500 below the chart and the positive correlation between the two markets is visible most of the time.

The 4.4 area above the current price is a significant Supply area although the price level is still some distance away.

With CPI coming out later today, big moves on Copper ahead of the release are not likely.

Lower-than-expected CPI data will probably lead to a stock rally and drag up copper.

The moving averages point upwards after crossing mid-December to the bullish side.

Copper trades above the Monthly Pivot which is typically considered a bullish sign.

A surprise in CPI data could lead to a correction and return the price to a retest of the range highs at 3.9.