Chart of the Day – Tuesday, May 14, 2024

Copper ripped right through those former highs back in 2020. It looks like it’s doing the same today.

A weekly close above 4.92 sets a potential target of 5.92. $HG_F $FCX $SCCO pic.twitter.com/DnaWucY5zy

— Ian Culley, CMT (@IanCulley) May 14, 2024

Today’s Chart of the Day was shared by Ian Culley (@IanCulley).

• Copper futures traded in uncharted territory today after breaching the all-time highs from February 2022. They settled at $4.895 per pound, marking the 2nd highest daily close ever.

• It has built a two-year base similar to the one it broke out from in 2020. Momentum is strong, with the RSI printing a three-year high today. Ian points out that a weekly close above $4.92 would open the door to $5.92, or +20% in potential upside.

• Some interpret Copper’s recent strength as a bullish sign of economic activity, while others see this as another inflationary headwind. Regardless, this is bullish for Copper-related ETFs ($CPER, $COPX) and copper stocks  ($FCX, $SCCO, $IVN, etc.). This also confirms what we’re seeing in China and Emerging Markets, as China is the world’s largest consumer of Copper.

The takeaway: Copper is flirting with all-time highs after completing a 2-year base. Copper Miners ($COPX) were clearly trying to tell us something last week…