- Copper has fallen a bit during the trading session on Monday, but you can see the market has turned around to show signs of life again.
- With that being said the market is going to continue to be very noisy, especially considering that the copper market now is in the sights of Donald Trump.
- He had suggested certain tariffs on certain copper products. And that of course caused the massive candlestick that we had seen in the middle of last week.
We drifted a little bit from there to the downside. It looks like the $5.45 level continues to be important, at least in the short term. But even if we did drop from there, I'd be watching copper right around the $5 level.
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$6 Level Remains Huge
The market could not make it all the way to the $6 level on that surge higher. And that's not a huge surprise because it is a large round psychologically significant figure. And it's also an area that would fire off a lot of alarm bells. You can look at the charts all the way back as far as TradingView will go to 1989. You can see we haven't seen $6, although I am the first to admit that I do not know for a fact if that would be an all-time high, or just an all-time high in the last 40 years. Either way, it means the same thing. It means that it would capture a lot of headline attention. The volume on the shot higher does suggest that this is a real move. And I do think it continues to be something you need to watch.
Copper markets can be a bit noisy, but I would watch the previous swing high at $5.37. And if we break down below there, then we start to get a little bit more interested closer to the $5 level. This is a market where if we could break the top of that massive volume candlestick from last week, it does open up at that $6 level. Anything above there would be extraordinarily bullish. Keep in mind that metals in general tend to move in the same direction. So, it's interesting the copper is now playing catch up with gold and silver, although they had different days during the session. With this being the case, I think you've got a situation where you're looking for a bit of value. Once you get that value, then you take advantage of it. That might be what's going on right now.
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