Chart of the Day - Tuesday, August 27, 2024

🏆  Today’s Chart of the Day was shared by Eric Conrads (@conradseric).

• Over the past three months, Copper has dropped as much as -22.6% from its peak. It broke out to all-time highs in May after forming a two-year base. However, the breakout quickly failed, leaving the bulls trapped above $5.

• It stopped falling three weeks ago after finding support slightly below $4. Eric points out that this level represents the 200-week moving average and the 61.8% Fibonacci retracement of the 2022 drawdown.

• Copper printed a Higher Low during the recent correction, meaning the long-term uptrend remains intact. Higher Copper prices are generally perceived as bullish for the stock market and the economy.

Takeaway: Copper is rebounding off a long-term support level. It recently dropped -22.6% from record highs; however, the long-term uptrend never broke. Higher Copper prices are generally bullish for stocks and the economy.