The whole rally from August to September 2024 was a affirmation of the collapse under the rising, long-term help/resistance line that began on the backside of 2020. In spite of everything, this line is the place copper reversed.
What’s hanging about copper’s present efficiency is that fairly sharp (from the long-term perspective) corrections might be anticipated after the preliminary a part of the decline. Subsequently, what we noticed matches completely into the broader bearish sample.
Take into consideration the conditions I highlighted with yellow arrows. Each final summit of the final twenty years has been adopted by rallies like this.
What is especially attention-grabbing from our standpoint is that these circumstances have typically been nice brief positions within the case of mining shares, silver and gold. I’ve marked these circumstances with yellow arrows within the decrease a part of the graph.
So is it justified to get enthusiastic about copper’s current “energy”? Sure, however solely so long as you’re ready to profit from the doubtless decline. Nevertheless, some long-term alternatives (in silver) proceed to look favorable.