Copper is Trying to Breakout
Copper is currently testing a key resistance level. It's up nearly 10% so far in 2019. Today, it closed at its highest level in 7-months. Copper is an important industrial metal used in construction, electrical equipment, machinery and more. Because of its numerous industrial applications, it can serve as a barometer for global growth and risk-appetite. In periods where industrial growth is booming, Copper is in high demand, and the price is likely rising. On the other hand, when industrial growth is weak, the demand for Copper is less, and the price is likely falling. It's often said that the metal has a Ph.D. in Economics and is referred to by traders as Doctor Copper for its ability to forecast inflection points in global growth. 
Above is a tweet from respected chart-watcher, Urban Carmel (@ukarlewitz). The chart is a daily candlestick chart of Copper with the 200-day moving average in red, and the 50-day moving average in blue. He highlights the fact that Copper is at the top of the range that it has been stuck in for the past seven months. You can also see that this level has been tested three times before.
Chris Kimble is another chart-watcher who's watching Copper right now. He wrote a short blog post today titled, Doc Copper About to Hurdle an Important Breakout Level? In the post, he gives his three reasons why he thinks Copper could be on the verge of breaking out. He begins by establishing that the primary trend for the metal is upward. The second reason he gives is that price has formed a double bottom in the past few months. Lastly, he explains that Copper is currently testing a resistance level that if broken, would be a positive sign for industrial growth and the global economy.
Below is one last look at Copper in a daily chart as of today's close. Notice how today's candle gapped up at the open, above the 200-day moving average (in blue) and was able to pierce through resistance to close above it. This gap up and follow-through is certainly bullish price action in the short term, and there doesn't seem to be much overhead supply to halt the rally until around $3. It's clear that further gains could be a healthy sign for the overall economy as well. It'll be interesting to watch this chart over the next couple weeks, to see if Copper can maintain its strength. We'll keep an eye on it and be sure to report back with any major developments.
