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Gold and Silver have performed well over the past 30-days. Copper is reflecting very nice relative strength since the upside breakout, compared to the more popular metals though!
Suggested to pick up Copper in this post (see post here) on an initial or small breakout for Copper. Now Copper looks to be pushing a little further away from key overhead resistance. Copper worked for over four years to break this line! Many will say this is a good sign for the economy and some will say that higher copper prices don’t reflect a growing world economy. Either way a breakout in price is a breakout, regardless of the message!
Game Plan…Continue to own JJC with a 6% trailing stop.
Caution is in order in re copper.
Wall Street Journal is reporting today that “… a single trader has reported it owns 80% to 90% of the copper sitting in London Metal Exchange warehouses…”
Only a month ago, the LME said “… a single holder owned more than 50%”, according to WSJ.
The single holder was not revealed by the LME.
If true, copper’s recent and dramatic price rise may reflect something other than true market valuation.
Bob…good to hear from you. The Copper chart I am showing as a breakout is the HG Copper chart, of the actual commodity itself (see link below). For those that don’t trade commodities/futures, they often use JJC, which is easy to buy in brokerage accounts. You are correct, per JJC is not higher than what it reached back in 7/2008.
https://www.kimblechartingsolutions.com/wp-content/uploads/2010/12/coppervictorydec21.gif
This is a interesting one. JJC has not yet reach it’s 2008 highs and the LME has a different chart over the past 10 years then the one you show. Just going off JJC could copper be up against strong resistance.