The copper price is testing its 50 day moving average as the January CPI report lurks
The daily chart of the copper price (futures) is pulling back to test the rising 50 day moving average, which is the intermediate uptrend marker. As it is it’s a completely normal pullback, and if assuming a bullish macro view for the copper price (there is reason to believe in that out beyond 2023 for theoretical structural macro reasons we’ll develop over time) it’s a buying opportunity. But the January CPI report is sure to roil this and other markets, which ever way it comes out.
A deeper correction in the copper price would see the 3.85 area and then 3.70, which also lines up with the 2017 and 2018 highs, not shown here. The $3/lb round number is for another time, which, if it happens, could be sooner if the theoretical structural macro engages later, or much later if it engages sooner. A hold here and well, it’s back to bullish business at least insofar as the intermediate trend is concerned. That is very thick resistance just above.
As yet it’s a routine pullback against the renewal of Fed hawk fears (ref. the theoretically cost-pushing January payrolls report) and the January CPI report is on deck. It’s sure to have an effect of Doctor Copper and a whole lot of other asset markets.
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