When it comes to commodities, the technical setup is especially informative. Price and volume are the main factors, which react to physical supply and demand conditions in the market. In the October 19, 2021 report, “Barrick Gold is on the efficient frontier,” I summarized the technical setup for copper as follows (emphasis added):
While the $4 level is extended to the upside compared to the next two lower support levels, it should offer fairly firm support given the bullish fundamentals. Next lower support near $3.27 should offer strong support if it is retested. It looks to be the floor for the foreseeable future.
Copper Technicals
At the time of the Barrick (NYSE:GOLD) report, copper was trading at $4.73 and attempting a breakout to new all-time highs. The following 2-year daily chart displays the price action of copper following the October 2021 report. Notice that copper formed a double bottom near $3.27 between July and September 2022.
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