Thinking about buying the dip in copper? Not saying it can’t or won’t bounce (it certainly is due for a bounce and nothing moves in a straight line indefinitely).
But seasonality suggests there might be opportunities with better odds. #sentimentrader pic.twitter.com/CJupSWQ9TV— Jay Kaeppel (@jaykaeppel) July 22, 2022
Today’s Chart of the Day was shared by Jay Kaeppel (@jaykaeppel). It’s a chart of Copper over the past five years, with its seasonal pattern below. Copper has lost a third of its value in the past year, and it’s now testing crucial support around 3.30. One would expect at least a bounce at this level, but Jay points out that Copper seasonality tends to peak around this time of year. As we know, Copper is perceived as a leading indicator for both the stock market and the economy. Will Copper bounce at key support? Or, will it follow its seasonal pattern lower from here?