 Good morning and welcome to the chart of the week video with me David Madden Today's date is Thursday the 15th of August 2019 and the time has just gone 909 British summertime and this week's chart of the week is copper We can see here at the metal has been in a fairly clear downward trend the last number of months since April We've we've been pushing lower on the on the metal and in fact the level it fell to at the beginning of the month Was a level last seen in January of this year So we're talking eight months lows for hate on the metal not too long ago And copper basically ties in with the with the with the kind of overall Perception that the global economy is slowing down. China is a major importer of metal Its manufacturing sector is in contraction during the week We saw industrial industrial production numbers and also a fixed asset investment number that china which were also disappointing Only yesterday. We saw contraction in a german economy a big manufacturing big manufacturing a country this talk of a recession of a recession in germany These are all feeding into the view that the global economy is slowing down And if if that is the case It's likely that we could see a fall in in demand for copper That's what we're seeing, you know, that's what we saw copper at eight months lows only a few days ago Now there is a small bit of good news in the past 12 hours We heard from president trump who tweeted out to china's premier Xi Jinping talking about the Expressing concern for what's going on in hong kong and essentially Sated that if the US and china want to strike a trade deal there must be a humane handling of the situation in hong kong and even called for a private meeting between the two leaders and that's That's just seen as at least as a step in the right direction. So the overall mood For financial markets is a bit more positive on the back of that But who knows whether something will come of it or not is a different story For the time being it seems to be it seems to have Lifted spirits a little because they were quite negative and down a bit yesterday Take a look at the price action. So it's in the clear. It's a fairly clear downward trend The market in the last few after hitting it in eight months. Love managed to kind of bounce higher but you know markets not moving straight line, so credit tracking and fasting themselves Is this push higher? just a temporary Rebound before the market turns over itself yet again looks to retest the recent lows in around the 254 area And if it does manage to break below that it could take its back down towards the 250 region 250 cents per pound that is and if you go below 250 cents per pound We could be looking heading back down towards this area this area here at 243 cents per pound Now this area at 250 54 cents per pound has acted as support on a number of occasions Essentially over the last couple of years. We've seen this region act as support So a break below 254 cents per pound on copper on copper is likely to be likely to be very significant That being said if the market has managed to hold above it on a few occasions We could see the metal we could see the metal maintain above these levels So if we do manage to actually press on higher from here Resistance could could could be found in around this blue line here the 50 moving average Which comes into play at 266 cents per pound We can see that this blue line here the 50 moving average act as both support and resistance Not too long ago and if a metric is acted as support and or resistance Not in the in the recent past it makes it more likely that it will do so in the near future But there are obviously no guarantees If you go below above 266 cents per pound the 270 region You saw a lot of consolidation in around that area in the last few months that area Might act also might act as resistance But in order for us to to kind of shake off or start to believe that the wider negative trend here Has come to an end We really need to see the metal get above and close above on a daily basis above the 200 moving average Which was this red line here and that comes into play at 274 cents per pound We can see here there's a spike in in mid july with metal trader above the 200 moving average But it had failed to actually close above it So we really need to see a close above that metric before we could think you know what the wider downward trend has come to an end And we and we look at we kind of pressing higher So the downward trend is still very much in play and keep an eye out for the 254 cents per pound area Just one thing before I go if you have any cobbles to make on this video or any of the other videos We've made here at CMC markets. Please feel free to leave a review on your views. Thank you very much