Don’t Forget About Copper

OANDA:XCUUSD   CFDs on Copper (US$ / lb)
Copper had a dramatic run coming out of the pandemic, more than doubling between March 2020 and May 2021. Now, after a period of consolidation, it may be ready for more upside.

First consider the ascending triangle that’s formed with a top around $4.35. It’s currently attempting its highest close in six weeks, which could result in a breakout. Traders may now focus on the 50-day simple moving average ( SMA ) as the next resistance line.

Second, CUUUSD also made a lower low this week, which means you have a bullish outside candle on the weekly chart. It follows a small inside candle the previous week. Price action like that suggests that the phase of tightening is near an end and prices may be ready to expand again:

Third, notice how MACD has been steadily rising all of July.

Copper’s fundamentals are also interesting because the red metal benefits from the spread of electric vehicles. (This stands in stark contrast to the other global-growth commodity, crude oil .) There are also supply constraints, especially with politicians in Chile and Peru looking to invest less in mines.

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