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Copper: Let It Lead Your Other Trades

ByMatthew Bradbard
Published 04/02/2014, 11:26 AM
Updated 07/09/2023, 06:31 AM
It's called Dr. Copper for a reason and I've been telling clients for the last few weeks that as Copper finds support and starts to track back over the $3 level -- which I view as the line in the sand -- it will give me the confidence to start probing bullish trade.

Copper

Let It Lead You

I view copper as a leading indicator and I use the movement to help guide me with other trades for clients. So the fist chart is copper...May futures are currently 15 cents off their recent lows and have gained ground 7 out of the last 11 sessions since establishing an interim low on 3/19. I see upside resistance at the Fibonacci levels as seen on the chart below followed by the down sloping trend line near $3.15 . So about another dime higher from current trade in the coming weeks.
Copper

Gold

June Gold futures have declined just better than $100/ounce in the last 3 weeks consolidating just below the 50% Fibonacci level. Yes prices are oversold but it is a bit disturbing that prices are still under the trend line that was breached last week. Wade into bullish trade lightly looking to add to the trade once the market proves you correct. I've suggested stops just under the recent lows and will be willing to commit more client capital when the $1300 level is retaken on a closing basis.

Gold

Silver

Silver has also gotten beaten up in recent weeks shedding 9% in the last 4 weeks trading under $20/ounce for the first time since mid-February. We appear to be establishing a base just above $19.50 with futures retaking the $20 level as of this post. Tight stops is the name of the game here as well. I think we can see a trade back to the 200 day MA which is seen on the chart below as the red line near $21 in May futures.

Silver

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