Copper and anything else paired to the Dollar felt more pain today as the USD spiked to its highest level in over 15 months. But I believe the dollar bull market and Metal’s bear market are both in their ninth inning.
Looking at the daily of Copper we had yet a lower close but looking back over the past two months, there are signs of hope for Copper bulls. Each recent major lower lower is met with a higher RSI. Bullish RSI divergence. Stochastics are oversold and although the MACD is still negative the peak to trough is much lower that the first higher low.
Conversely, the $DXY which charts the Greenback has a very clear higher high today but the RSI is not confirming.
What’s the game plan? Long for a swing trade up the the 38% Fib Retracement coming in at 2.9187. That is unless the rough looking double bottom (including a daily wick) holds.
Copper is one of the base metals the modern world cannot do without. That’s me not going into all the personal electronics and electric cars combined with a supply glut looming. So why not like the red metal down here with a decent trade setup.