Copper has witnessed an unusual steady uptrend that has an outcome of around 10 percent appreciation. The uptrend is considered remarkable due to various factors.
The factors like a high volume smackdown earlier in the month, which made it look bearish, and a row of higher closes of nearly 16 days trading days.
In the context of the latest 1-year chart, copper is seen as not broken down from its steep uptrend in force through the month. The metal is said to be overbought on indicators like MACD and RSI and is way ahead of its 200-day moving average. The factors inclusive of extreme COT structure and sentiment indicators are suggestive of the metal going reverse and reacting back.
Meanwhile, copper’s latest COT chart exhibits a Large Spec long positions that are very close to the highs of the past year. A reaction by copper has ensued on reaching the sorts of levels in the recent past.
Now, moving to the latest copper optix (optimism chart), there is reportedly a bullish sentiment towards copper, which is at an extreme that has been observed before in the last 10 years, which coincides with a major top. This is indicative of a high probability that the metal was close to a significant intermediate top.
Copper’s long-term chart looks bullish, as the bull market is said to have begun in October 2016, which has been driven by record strong upside volume. This is indicative of a longer-term outlook remaining favourable and a high probability of copper eventually proceeding to break out to a new all-time high, with an acceleration of rate.
The copper price variables have a general implication on the economy, especially in the context of prices of other metals, like the silver prices. Experts believe that what is observed on the long-term copper charts, transcends into the future trend of silver prices.