Copper Shows Strength

Copper Shows Strength

Dragonfly Capital  | Oct 12, 2017 08:16AM ET

Copper has moved up quite a bit since making a bottom in early 2016. Up over 45% since then, many will say, 'this is old news and you missed the move.' I think they're right. And they're also wrong. The move shows a year-long 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, the metal moved 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 you bought at the bottom and remained in for the entire ride higher, congratulations.

iPath Bloomberg Copper Subindex

If you have missed the move, you're 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 (NYSE:JJC). But there's 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's 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.

Dragonfly Capital

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.

Don't follow this advice. You'll lose money. copper will drop to below $3 again.   ... (Read More)

Oct 15, 2017 10:17PM GMT· Reply
M Salman Afzal
M Salman Afzal

What is your opinion copper will rise again more or will be down soon   ... (Read More)

Oct 14, 2017 04:45AM GMT· Reply
paulo baptista
paulo baptista

wrong. Copper rose. but mining companies do not. Sell  ... (Read More)

Oct 12, 2017 01:19PM GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+