Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!
With Industrial stocks ($XLI) on an upward trajectory and Chinese Industrial’s ($CHII) challenging resistance to the upside, I thought it would be worth a stop at the Corner to discuss a potential opportunity in Copper ($JJC).
Copper is firm and in a long-term bearish trend, bouncing off of the $2.92 level. It is too early to turn bullish. But, I am watching the October highs for a breakout, which would be short-term bullish.
This industrial metal was oversold in late September and momentum is improving. We saw this type of set up in April of this year when Spot Copper ($HGZ14) bounced off of $2.92, then made a huge run to rally to ~$3.30.
I would look at bullish vertical spreads that would take advantage of this potential bounce.
See you next time at the Corner!
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