The price of copper (COPPER) is breaking out. We wrote recently that investors should wait for the Ultimate Confirmation Of A New Bull Market In Copper, and we identified $3.00 as the ultimate breakout point. As copper is blasting through $3.00 now it seems we are getting that confirmation.
Note there is always this possibility of a false breakout. It could well be that copper rises just a little bit more only to come down sharply and invalidate its breakout.
Otherwise our viewpoint aligns on what this article says, regardless of the real fundamental driver. And we do not see the market correlation between rates and the price of copper which was suggested in this article.
When it comes to copper’s price chart there is clearly bullish area above $3.00 and a bearish area below it.
As outlined earlier the breakout of copper took place around year-end, once copper broke out of its falling channel. We provided extensive coverage of that important ‘event’: this article written by our team in November last year Copper Price At Secular Breakout Point and Copper Price: Tactical Bull Market Ending Once $2.50 Broken.
Copper decided to respect its breakout, and we said the ultimate confirmation of the secular breakout kicks in at $3.00. With the caveat that this breakout can potentially be invalidated we believe the copper market is very bullish right now.
