Copper showing strength

Copper has already moved up quite a bit since making a bottom in early 2016. Up over 45% since that time, many will say, this is old news and you missed the move. I would reply that they are right. And they are wrong at the same time. The move in the rearview mirror shows a yearlong consolidation ending with a sharp rise following the election last year. There was a drift up after that for 6 months but not much progress as it started to approach its 200 week SMA. More sideways price action into July this year.

In July it pushed up again over the 200 week SMA. It had not closed above that since February 2013, nearly 4 and a half years earlier. Copper prices then continued higher to a top at the beginning of September, before pulling back. That minor pullback found support at the end of September and it has been rising since. If bought at the bottom and have stayed in the entire ride higher congratulations.

If you have missed the move you are also in luck. First the reversal higher in September gives a solid price risk level to trade against. Second the opportunity looks good. A Measured Move from that low looks to target a move to 41.20 in the Copper ETF ($JJC). But there is also an Inverse Head and Shoulders pattern forming. A break of the neckline shown would give a price objective to at least 50.50. That is nearly another 45% move. There is still time for money to be made in Copper. The reversal from the long term bottom is just getting started.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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