Copper ETFs, Stocks About To Move Big
Chris Vermeulen | Dec 31, 2012 11:54AM ET
With 2012 nearly gone, it’s time to start looking for new long-term investments with big potential gains in the new year. Copper is one metal that has caught my eye.
The long-term monthly chart of the copper ETF JJC shows a potential cup and handle pattern accompanied with bullish volume characteristics. Last year copper traded sideways in a narrowing range. This type of price action tends to bore traders and investors forcing them to look elsewhere for new to trades. The saying is “If the market doesn’t shake you out, it will wait you out”
You can see on the monthly chart that the interest in this commodity diminished. You can tell because of the sideways movement and declining volume. I like to focus on investments which are out of favor but are showing signs of another big trend starting. getting on the train before it leaves the station can make for a fun ride. I do post some of my trading ideas with my charts updating live each day LUNMF ): 4.55%
Best Copper Stock Setup – LUNMF
After reviewing the main holdings in this fund I noticed one stock that looks ready to start a new bull market. Lundin Mining. shares look to be building a Stage 1 base and could break out and start to rally any week. Keep in mind 3/4 stocks move with the broad market so we do want the major indexes to find a bottom or at least trade sideways if we want copper stocks to start their run.
Copper Futures, ETF and Stock Trading Conclusion:
Copper has lost its shine over the past 12 months but could start to make headline news in the near future. I like both COPX and LUNMF if we see further strength.
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