It seems the metals arena may be nearing a more significant move.
Earlier this week, we talked about the precious metal silver. Now, we turn our attention to the industrial metal copper.
Today’s chart is a long-term monthly chart of copper, highlighting why we may be at a crucial juncture.
As you can see in the chart below, copper has produced a couple of double tops at each (1) and some considerable bounces after hitting price support (green line).
Right now, copper is testing resistance. Whether the two longer wicks will produce a double top or whether this is part of a bullish consolidation construct between $4 and $5 is still in question.
If it’s a double top, copper could see a significant decline. But if it’s a bullish consolidation, technically, copper could be headed to the 1.618 Fibonacci extension up, near $7.
This is shaping up to be another critical metals situation. Which way will copper break? Stay tuned.