Over the past few months, copper has been hit hard as sellers drove it down nearly 25%.
This decline brought it to the price point (2), where four different support lines came into play, which looks like a support cluster. As the decline was taking place, momentum was hitting oversold levels.
This week, copper saw its strongest rally this year, as it broke above steep falling resistance.
If copper continues to push higher, it’s possible that it will send a positive to some hard-hit global sectors.