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<\/p>\nOne of the best-looking trade setups in the market today is in copper.<\/p>\n
The price of copper exploded higher earlier this year, as the pandemic caused a supply shortage.<\/p>\n
And, from a risk\/reward perspective, buying copper right here at $4.32 per pound offers limited risk and plenty of potential reward.<\/p>\n
First, let’s take a look at this chart…<\/p>\n
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We can see copper peaked in May, at just above $4.70 per pound.<\/p>\n
At that price, copper was up about 50% in six months. Of course, that’s a dramatic price increase for just about any commodity.<\/p>\n
It’s spent the past six months consolidating that gain. The price action over the past few months has created a consolidating triangle pattern on the chart (blue dotted lines).<\/p>\n
Copper broke out of that pattern last month with an explosive move back up to the May high.<\/p>\n
Over the past two weeks, the price of copper has drifted back down to retest the breakout level as support<\/a>. It’s also now sitting right on its 50-day moving average<\/a> (MA) line – which offers additional support.<\/p>\n
| \n Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n If copper has started a new rally phase – which I think it has – then support should hold right here near the $4.30 level. A bounce off of this level would form a “higher low” on the chart and confirm the start of a new rally phase.<\/p>\n |
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