Dr. Copper Back at Key Zone. Recessionary Trends Incoming?
Copper is back at the major 2.50 zone I have spoken about in the past. Here is a weekly chart to show you how crucial it is:
Copper of course is known as Dr. Copper due to it indicating the health of the world economy. And of course China consumes more than 50% of the copper supply.
On the daily, we had multiple swings on an uptrend but recently, had a big fall from the 2.86 zone back to this key zone of 2.50. We have yet to make our first lower high swing in this downtrend. This swing could be forming at 2.62, but it requires a break and close below recent lows, taking us below 2.50.
We know how coronavirus has impacted China, but perhaps copper has not priced in the recessionary trends that will come if this virus worsens. Less people travelling, less people spending money, supply chains getting disrupted all will lead to recessionary trends.
We could see this break here in Copper.
Copper of course is known as Dr. Copper due to it indicating the health of the world economy. And of course China consumes more than 50% of the copper supply.
On the daily, we had multiple swings on an uptrend but recently, had a big fall from the 2.86 zone back to this key zone of 2.50. We have yet to make our first lower high swing in this downtrend. This swing could be forming at 2.62, but it requires a break and close below recent lows, taking us below 2.50.
We know how coronavirus has impacted China, but perhaps copper has not priced in the recessionary trends that will come if this virus worsens. Less people travelling, less people spending money, supply chains getting disrupted all will lead to recessionary trends.
We could see this break here in Copper.