Copper Futures Look Golden

 | Apr 05, 2017 | 2:09 PM EDT
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Yesterday we posted a short article on the copper ETN, iPath Bloomberg Copper Subindex Total Return (JJC)  , and now that we are in the Wall Street office today we thought a look at the nearby futures contract wouldn't hurt. Copper futures look more bullish than the ETN.

In this futures continuation futures chart, below, we can see a bullish triangle formation. There is a rising (demand) trendline connecting the lows over the past several months and there is a horizontal trend line along the highs (representing supply).

Source: Bloomberg

The rising trend line tells us that buyers of copper futures are becoming more and more aggressive as they pay higher and higher prices to go long. Prices have rallied above the 20-day and the 50-day moving average lines and there is a higher low from the 10-day momentum study in the lower panel. Triangle patterns typically break out two-thirds to three-quarters of the way through the pattern so we should all be sitting on the edge of our chairs in anticipation of an upside breakout.

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