Tuesday, September 18, 2018

Copper Looks Promising


It looks like there is a good chance for better times for copper. Look at the chart below:



Source: Simple Digressions and the COT data

Note that now the so-called commercials, mostly copper producers, hold a net long position in copper futures (the red circle). Last time they held a similar position was October 2016 when copper prices were at the beginning of a vicious bull market (the green circle).

If I am correct, we may be ahead of another leg up in copper and this week’s white bullish candle (just forming) could be the first sign of it:



Source: Stockcharts.com


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