COPPER Daily Chart; Peru Hit with 8.0 Earthquake

An 8.0 earthquake hits northern Peru. Buildings are damaged and power outages are reported. This is the largest quake in the world this year thus far. There are two major copper mines in northern Peru but there is no information yet as to how the quake may impact production. Price popped for two days due to the possie d with the histogram and the RSI and stochastics were oversold agreeable to a bounce. The other chart indicators are weak and bleak wanting price to explore the same lows for a couple days or so more and then start a relief rally. The earthquake may start a rally right away.

The symmetrical nature of the chart is truly remarkable. You rarely see such symmetry. Copper rallies big to begin the year when the Federal Reserve and other global central bankers colluded to save the stock market and protect the wealthy class. The stock market was toast on 1/3/19 so the central bankers panicked and started printing more Keynesian money like madmen. The same-o talking points occur during this year's rally as other central banker-induced rallies about how growth will accelerate so investors buy copper. The US-China trade deal was expected which sent the red metal to its peak in March-April.

Then the trade deal starts to fall apart. Global PMI data is weakening indicating a slowdown in global growth. Thus, copper demand may wane. Auto sales are lower. Housing sales are muddling along. These two sectors use the most copper so weakness in these key industries will stab daggers into copper's belly.

Copper is collapsing into the apex of that red falling wedge which is a bullish pattern. Copper is testing support levels from January. There is lots of congestion at 2.64-2.68. Copper will likely keep chopping sideways through the year. Keystone has no position in copper. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Friday Afternoon, 5/31/19 at 3:23 PM EST: Copper is at 2.634 down -1.8% this week. Copper had a little bit of lift from the Peru quake on Sunday and then price collapses after that (due to the weak and bleak MACD line above) into today. With the lower low in price, the copper chart is now showing positive divergence across all indicators so the red metal will likely bounce in this daily time frame. Copper may shine next week.