You may recall that we have been expecting copper to accelerate to the upside for some considerable time now. As we can see on its latest 6-month chart below, it did make a noble attempt to break higher towards the end of January, but unfortunately at the worst possible time, for the very next day gold and silver got slammed really hard. It was like
the scene towards the end of the movie Butch Cassidy and the Sundance Kid where they bust out of a shed in Bolivia guns blazing and are met with a hail of bullets, the difference being that whereas they didn’t live to fight another day, copper had a very swift change of heart and dived back into the shed and is now ready to bust out again at a much better time. This chart shows that copper is now an established bull market with its moving averages in strongly bullish alignment and is advancing in a classic “staircase pattern” and with the rising 50-day now coming into play to support the price, the 2nd step visible on this chart of the staircase now looks to be complete with the advantage that the earlier overbought condition is now fully unwound, so there is plenty of upside from here. The next upleg therefore looks imminent and with the advance set to accelerate in the face of an acute supply crunch, it is thought likely to be bigger than anything we have seen so far.
Alright, so are there are any investment vehicles that we can utilize to take advantage of this expected big upleg in copper? There are copper stocks of course, and we will look at one of them this morning, but they always carry the risk that they won’t move with copper itself for their own reasons, but the subject of this article will very likely move with copper itself, because it’s a copper stocks ETF.
On the 6-month chart for the Global X Copper Miners ETF shown above we can immediately see that it is already in an established powerful uptrend which shows no sign of coming to an early end – on the contrary, after a modest reaction and consolidation pattern following its becoming wildly overbought on very heavy volume towards the end of January, in common with gold and silver and many metals stocks, it looks ready to take off higher again and very possibly immediately.
Global X Copper Miners ETF is therefore rated an immediate strong buy.
Global X Copper Miners ETF webpage
Global X Copper Miners ETF, COPX (NYSE), closed at $90.85 on 23rd February 26.
Posted at 8.55 am EST on 24th February 26.