Copper made 5 week highs today. Which is probably why the mining stocks started to accelerate. Copper is called Dr. Copper because of its ability to forecast economic turns. I like seeing a 2 week high on sensitive stuff like copper. This huge breakout is big news to me.
Notice my big blue arrow showing Copper jumping up and closing above both the 10 week and 40 week MA. TCK, FCX and BHP have all broken the down trend. RIO and VALE are pressing the line. Breakouts on both would signify a sector change. I also noticed there was major insitutional buying starting to show up in the mining sector.
Bears should start to hibernate if this starts to run.
Good Trading,
Greg Schnell, CMT
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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