Source: Streetwise Reports
July 27, 2017 (Investorideas.com Newswire) Technical analyst Clive Maund charts copper and finds it has broken strongly higher, a move that he says has profound implications for precious and base metals.
Over the past couple of days copper has broken strongly higher, and while copper itself may be of little interest to most of us, the implications of this development are profound for the base and Precious Metals sectors. Copper is an important lead indicator, which is why it earned the moniker "Dr Copper," and since it now looks like it is starting a major bull market, this is a sign that a major bull market is about to begin across the entire metals sector, which as you know is what we are looking for in gold and silver. Silver in particular is gruesomely undervalued and has huge upside potential from here.
On its 8-month chart we can see the impressive breakout move in copper of the past couple of days. Everything about this chart is bullish, with the advance being supported by strong volume and positively aligned moving averages.
On the 10-year chart we can see that this move in copper marks its breakout from a large Head-and-Shoulders bottom. Volume and volume indicators have been very positive indeed (including On-balance Volume which is not shown) as this pattern has approached and achieved completion. There is a band of significant resistance not far above in the $2.90 - $3.10 zone and the really big upside action can be expected to take place once the price has succeeded in overcoming this resistance.
Copper closed at $2.87 on the CME (Chicago Mercantile Exchange) on 26th July 17.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
Charts courtesy of Clive Maund.
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