Along with the rest of the precious metals sector, copper has been in the doldrums for an extended period of time.
Recently some positive divergences showed up on the daily charts, and the commercial hedgers have increased positions to a level where rallies have started in the past.
There are several ways to play this move. You can use the copper ETF which trades under the symbol (COPX), but it trades rather thin. You can also use the iPath Dow Jones-UBS Copper ETN which trades under the symbol (JJC).
There are also possible opportunities in individual stocks Freeport McMoran Copper & Gold (FCX), or Southern Copper (SCCO) which give the added boost of paying nice dividends.
Here are some annotated charts that have me interested in the sector. As always, use stops to protect your portfolio from big losses.
Click on charts to enlarge:
Recently some positive divergences showed up on the daily charts, and the commercial hedgers have increased positions to a level where rallies have started in the past.
There are several ways to play this move. You can use the copper ETF which trades under the symbol (COPX), but it trades rather thin. You can also use the iPath Dow Jones-UBS Copper ETN which trades under the symbol (JJC).
There are also possible opportunities in individual stocks Freeport McMoran Copper & Gold (FCX), or Southern Copper (SCCO) which give the added boost of paying nice dividends.
Here are some annotated charts that have me interested in the sector. As always, use stops to protect your portfolio from big losses.
Click on charts to enlarge:
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