Copper is the red metal, or the other yellow metal if you prefer, and has experienced a record multi-year upside rally on the AI, data center, and all things chips and electronics hype. Copper was always an indicator for the housing and automobile industries since these were the two biggest users of copper. The indoor plumbing is copper and the car wiring, electronics and other parts, such as the starter motors, are copper.
But in recent years, technology rules the roost and with the AI hype, copper has found a new sugar daddy. Copper is now an indicator for the health of the artificial intelligence sector. Homes are now fitted with non-copper pipes. The slow rise of EV's (glorified golf carts) are big users of copper so the adoption, or shunning, of electric vehicles will impact copper prices. Copper is also subjected to global weather events and civil unrest and riots. Copper shines riding the AI wave.
But will the wave crash? The rising wedge pattern is ominous as price works up into the apex with nowhere left to go. The collapses from the bearish rising wedge can be quite dramatic. Two weeks ago, price received the initial neggie d spankdown slap but last week, after price touched the bottom of the wedge it bounced, on more AI hype, and price ran higher to the top rail of the wedge.
The red lines clearly show the negative divergence in play across all chart indicators. Copper is out of gas without any fuel remaining in the tank. Not even any fumes. The expectation is for copper to begin a multi-week neggie d spankdown.
The standard deviation bands are squeezing in to multi-year tightness (purple arrows). A huge move is on deck for copper, on the weekly basis. Tight bands forecast a big move on tap but do not predict direction. The chart is bearish so down is the expected path forward but Emperor Jensen or Lord Dario may provide happy AI talk that gives the red metal another boost. The chart is toast, on the weekly basis, so happy news is all that can save it now. The copper monthly chart remains long and strong so price should receive the smack down from now say through much of October and then likely recover into year end.
October is at our doorstep. Interesting. The month known for crashes. September is usually a lousy month for stocks but the notable crashes occurred in October. Watch your wallet.
The US housing market has slipped into a double-dip recession so copper pipes and fittings are collecting dust at the plumbing supply company. EV's have lost some of the luster. Buy one of those electric golf carts and you buy a job plugging it in and out, looking for charging stations, and the rest of it. What idiot buys an EV when a gas station is on every corner? With housing slumping, and the auto business sluggish since common folks do not have any money, AI is carrying copper on its back and its spindly legs are starting to give-way.
Copper is set to take a multi-week slide lower unless the AI tech bros can save the day with more hype. Forget the tech bros and instead go with the Blues Brothers. Live, from Calumet, Illinois, give it up for the Blues Bros. Dan Aykroyd's fat old arse could not dance like that now if his life depended on it. 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 Thursday Morning, 9/24/26: Dr Copper is shot-up with more morphine and continues dancing a jig of joy. Price pops this week up to the top rail at 6.83 again piercing the upper band as the standard deviation bands continue pulling-in tight. A big move is coming and the weekly chart remains in neggie d saying down is ahead for a few weeks. Tell that to the price. Copper is spanked down from the 6.83 trading at 6.66. Trip 6's.
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