 Good morning and welcome to the chart of the week video with me David Madden Today's date is Wednesday the 22nd of January 2020 and the time's just gone 1155 GMT And this week's chart of the week is copper as we can see here since October onwards Copper has been pushing higher and in fact last week hit a level last seen Since May last year. Sorry apology. Yes early May last year. So the market hit a multi-month high That will suggest things are moving to the upside It would suggest also that the metal has kind of snapped out of the range found trade. I was kind of locked in for quite some time But as we can see here, we have seen a bit of a sharp enough move to the downside We found a fairly aggressive sell-off and in the last couple of sessions a very bearish different candle yesterday The market the market closed pretty much at the low of the session We could also see on the MACD histogram the MACD indicator has been a steady increase in negative momentum So the bearish move we've seen as we confirmed by the increase in negative momentum So is this the question we can ask ourselves is that are we going to see a further decline in the near term? For copper is this going to be a reversal of copper's fortune or is it just simply the market having a fairly decent pushback before it potentially Continues in the wider upward trend that has been in since October. So It is worth keeping an eye on the weekly chair weekly candle we can see here that this could potentially form as a potential for a Bearish weekly reversal here. Obviously today's that it is Wednesday So we just say all things play out for the next couple of days But that is something that need to keep keep an eye on and if you do have if you do a further ground to lose Uncopper in the near term we're going to potentially find support from it might potentially find support from this zone here in around 276 a pound down to 275.1 cents per pound this area here as a potential to act as Support we did see This region active support a number of occasions at the beginning of the month So the possibility it might act to support in the near term Should we see a decent break below that though? That could be a signal that would prefer the losses and it could potentially take us back towards this red line here The 200 a moving average and that comes to play at 268.5 cents per pound and we can see here that that metric Active nicely as resistance back in earlier early November and if a metric has been important in the past It makes it more likely it will be important in the future. Obviously there are no guarantees This is and it's only really if you have a fairly size of break below that Okay, then we begin to think you know what maybe Upward trend we've seen since October has run its course and we could be looking for further losses from there But keep in mind we did achieve multi-month highs nothing on a go So the possibility that the wider upward trend could continue should that be the case and should we look to kind of shake off and Shake off that the recent losses and regain the ground those last recently We could be looking at retesting the highs of our of mid-January She's coming to play in this area here in around 287 spot 8 cents per pound and if you go beyond that we could maybe looking at targeting this area here Level that scene in a the back end of April last year And I was going to play in around 291 cents per pound It is we're keeping me keeping on keeping that keeping in mind. We're approaching the China the the the lunar New Year celebrations Given that we probably see a slowdown in echo activity out of China in the next few weeks So any kind of economic indicators we see in the next couple of months need to take notice You need to take note that that might be impacted by what's going on in relation to the the lunar New Year celebration also be mindful of what's going on in relation to contention health care That's going on in China at the moment Obviously China's a large importer of this particular red metal. So any kind of signs that economic activity are gonna be hampered because of Potentially because of the health potential health crisis over there that could have negative impact on this particular red metal Thank you for listening to this video and please cheer next week. Thank you very much