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Metal prices have risen at an extraordinary rate in recent years. You can see from the weekly chart below that prices have risen five-fold in less than five years for Hi Grade copper, a benchmark metal. You might also note the range trading Elliott pattern.
click chart for more detail
You can also see that copper has made a number of attempts to push through. A key question right now is, can it make another attempt and succeed?
For guidance on this let’s look at a daily chart, where we see a fairly bullish picture:
click chart for more detail
Whilst the chart indicates an upside I take the view that it is not a sound long-term trade at this time. Judging by the monthly chart below, it’s reasonable to conclude that we will need to see a deeper pullback before copper and other metals can take out a significant high:
click chart for more detail
There is good money to be made in copper futures and copper-leveraged companies, but it will all be in the timing!
Enjoy the ride!
Tom Scollon
Chief Analyst
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