Karpel’s Corner: $DBB breaking out to the upside

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!

$DBB breaking out to the upside

I’ve been watching the Base Metals ($DBB) and they are looking like they are ready to break out to the upside. A breakout would confirm an Inverse Head and Shoulders, with $17 being the next resistance point on the Metals ETF. 

This means that we will keep an eye on the action in Copper, Aluminum & Zinc.  If weakness enters these metals, especially Copper, the upside could be challenged quickly.

We are also watching $ITB Home Construction names — $OC, $AWI and $USG — as potential bullish candidates. They are only on the radar at this stage.

See you next time at Karpel’s Corner!