Copper prices have been running hot ever since the onset of COVID.
Sound familiar? Yep, because it’s happened across several commodities.
Things are rough right now on the inflation front but could it get worse before it gets better?
Today we look at the long-term monthly chart of copper futures to highlight a major test of breakout resistance. As you can see, copper has risen to test a key price level around $5 at (1).
Should copper breakout above this level, Fibonacci analysis point to a potential move to $7.20 (the 1.618% extension level).
That would definitely not bode well for future inflation prospects. Stay tuned.