Copper on the rise

After the range breakout on Tuesday, Copper has been rallying higher.

Traders refer to this market as Doctor Copper since it indicates economic health. I plotted the correlation to the S&P500 below the chart and the positive correlation between the two markets is visible most of the time.

The 4.4 area above the current price is a significant Supply area although the price level is still some distance away.

With CPI coming out later today, big moves on Copper ahead of the release are not likely.

Lower-than-expected CPI data will probably lead to a stock rally and drag up copper.

The moving averages point upwards after crossing mid-December to the bullish side.

Copper trades above the Monthly Pivot which is typically considered a bullish sign.

A surprise in CPI data could lead to a correction and return the price to a retest of the range highs at 3.9.