Commodity Trade Mantra
Quotes by TradingView

Guess Which Metal’s Rallying Right Now…It’s COPPER

Guess Which Metal’s Rallying Right Now…It's COPPER

Guess Which Metal’s Rallying Right Now…It’s COPPER

Have you cashed out your trading account and stuck it all in your mattress?

Well, take it back out. Because I’ve got a killer trade for you today…

I’m talking about an oversold, beaten-down metal that’s finally flashing a buy signal. A quick snapback trade could easily add some reinvigorating double-digit gains to your trading account…

That metal is copper.

Surprised? I don’t blame you. I’ve nearly written off copper a number of times. But the charts are saying something else right now. We’re might not see a complete reversal of fortune that leads to a five-year copper rally, but that doesn’t mean we can’t raid the market for a nice short-term gain…

Digging through the commodity market wreckage has been a grisly task these days. Busted charts everywhere, a wasteland of multi-year lows and broken trades.

But after a six-year drubbing, copper is rising from the dead.

That’s right – Dr. Copper’s springing back to life. And the best part? No one’s paying attention yet…

Can’t say that I blame them. After all, this metal’s been a dead man walking for years. From 2001 to 2011 the price of copper exploded more than 620%, with its spot price topping out near $4.50. It’s impossible to overstate the enormity of that rally. But that’s ancient history now…

The commodity boom has been unwinding for years now, dragging copper down the tubes with the rest of the lot. Its most recent drop began in May. And in the four months since, copper has dropped more than 20%.

By last month, it had fallen more than 50% from its peak, crashing to 6-year lows.

No wonder most market watchers can’t even stomach a copper chart these days…

But they should. The charts are whispering that copper might have found a bottom last month. Check it out:

Off the Lows...

While most folks were ogling the stock market’s relief rally yesterday, Dr. Copper shot up more than 5%. That’s a huge move. And it could very well be the start of a double-digit sprint higher…

Now, I don’t think copper’s going to magically roar back to its 2011 highs before you buy your first pumpkin spice latte this fall. But a strong oversold rally is certainly in the cards here. And that could easily cause some mining stocks to go haywire to the upside…

Don’t worry. With all eyes on stocks this week, we’ll have this trade all to ourselves…



Courtesy: Greg Guenthner for The Daily Reckoning

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