Doctor Copper is now in session and his prognosis for the world economy appears to have improved significantly!

Whilst listening to Donald & Dave’s recent episode of their excellent new series of podcasts, I found myself pulling up a chart of copper futures following the discussion of Phoenix Copper (LON:PXC) , and a few things caught my eye.

As a Trader/Investor who also likes commodity plays and someone who is finding new insight via technical analysis I’d like to share my outlook on copper from a technical perspective, before subsequently making a (very) brief fundamental case to back up the bullish case for Copper.

This is a series showing the long-term futures chart below (right click and 'open in new tab' or hit the TradingView links below the images to see more clearly).

Note the structure is clearly defined into 2 sections; following a classic looking breakout around June 2005, we are now interested in the part to the right so I will focus on that.


From what I‘ve seen described by Jack Corsellis in his thread, to me, this looks like it could be a Wyckoff accumulation type pattern.


Price has made higher lows x3, broken out of a wedge and has even already pulled back to test the top of it with this month’s candle currently showing good potential for bullish follow through; the March 2020 bottom is potentially acting as a higher low double bottom in conjunction with the Jan 2016 low.

If we then look at the weekly chart below, we can see a nice ascending wedge structure with price threatening to break out to the upside. Closer inspection of recent price action reveals a bullish engulfing candle in an outside, outside bar formation.


On the daily chart below, we can see price looking to break out higher from the formations described previously. Furthermore, the ATR is telling us we are currently at a period of relatively low volatility. As we always move between highs and lows (in terms of relative volatility), the ATR can be a useful guide of potential price movements to come; currently it is suggesting volatility will increase over coming days which could aid the breakout…

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