 Good afternoon and welcome to the Chart of the Week video with me, David Madden. Today's date is Tuesday, the 20th of October 2020 and the time has just gone 1810 bird of summer time and this week's Chart of the Week is Copper. Copper has been on quite a decent run the last few months. We can see here since the lows of March through to today it's been in a solid upward trend, a nice series of higher highs and higher lows and in fact today the Copper market had its highest level seen since June 2018 so it hit a 28 month high. The market's clearly been pushing higher. We can see a steady increase in positive momentum on the MACD histogram, the MACD indicator, so things are looking to be quite bullish on the Copper market. If we continue to press on higher from here and should we continue to hold above the 300 cents per pound metric around here, if we continue to hold above that metric it's likely that the wider upward trend could continue and should that be the case it could be looking at heading up towards this area here in around 330 cents pound. Notice how on a few occasions in one in July 2014 I'll have a couple of occasions and once again in December 2017 and also in June 2018 so on a few occasions in the last number of years, 330 cents a pound acted as resistance so it would seem to be a pretty significant area so if you press on higher from here we could look at retesting it and if you break above it it will be quite significant seeing as there's a few occasions the market failed to get above it and if you do take out that level we could look at targeting this area here the highs of December 2013 and that comes into play in around 348 cents per pound. Let's discuss the other side of the coin obviously this we've been in upward trend the last few months but sometimes the pullbacks have been greater than others so if we do move lower from here support could come into play in this area here in around 300 cents a pound it's a first of all it's a big number but also we can see that there's a bit of consolidation in that area in the last few months while the market was moving higher that area active resistance even when we had a drop back below the general zone active resistance in late September early October it also acted as support not too long ago if you drop even if you drift below that this blue line here the 50 moving average which acted nicely as support in late September also in middle of August and also back in the middle of May that area active support so if an area active support the past it makes it more likely it will be significant in the future although there are no guarantees and that comes into play just below the 300 cents per pound level it comes into play at 298 cents point 298.38 cents per pound and even if you go below that support could come into play from this yellow line here the 100 day moving average that comes into play in around 286.8 cents per pound and you know it's you don't really begin to kind of question the rally over the last few months if you break up if you break below the lows of early to kind of early to mid August here and that comes into play in this zone here in around 270 cents per pound and even if you go below that we could be heading back down towards this red line here which is the 200 moving average and that comes into play at 265.25 cents per pound now you might be wondering what's been fueling this this this this move that we've seen in the in the in the cop market well we have some earlier this week we had some positive economic indicators coming out of China in the third quarter on an annualized basis economy grew by 4.9 4.9 percent that was a decent improvement on the 3.2 percent growth that was achieved in the second quarter keep in mind economists were expecting a 5.2 percent growth so there wasn't any you know it was a step in the right direction in terms of the economic expansion but it wasn't high enough in terms of economics forecast the industrial production reading on annual basis in September grew by 6.9 percent that was a decent increase on the 5.6 percent that was posted and also topped with the 5.6 percent that was posted in August and also topped on the 5.8 percent forecast that economists were predicting in recent weeks of months you know that's been some mixed in announcements out of China but we have started to see in broadly speaking a kind of sign that the economy is recovering China is the largest importer of copper in the world so that that's been so that that's that's fueling demand owning the last there so we've also heard that in September China's refined copper output increased by 10.3 percent on annual basis that was a decent increase on the August reading and it's clearly it's clear if the refined copper output is is quite high its indication of how high they're kind of their internal demand for kind of copper to be refined comes into play as well that's all from this video thank you for listening have a good training week and good luck