Metal markets dropped sharply yesterday, with platinum losing 1.5% and silver dropping 3%. This likely sets up the next leg down in the bear market that’s plagued gold, silver, platinum and copper since 2011.
The copper market is of particular interest to Boom & Bust and Cycle 9 Alert subscribers. Both portfolios hold bearish positions in copper that are generating open gains between 20% and 40%.
Based on the two charts I have to share with you today, you’ll see there are bigger gains to come!
First, a chart of copper futures…
Since the first quarter of this year, copper has repeatedly failed to rally above $3.40 per pound (the horizontal red line above).
Following its last attempt in August, a series of lower highs (the descending red line) and higher lows (the ascending blue line) set up a consolidation triangle pattern.
I’ve been waiting for a breakout from this pattern. Yesterday we got it… to the downside! From here copper futures could slide as low as $3 per pound before finding support. That move could take only a few weeks.
Now, here’s a chart of the company we’re betting against in Boom & Bust AND Cycle 9 Alert…
Currently trading between $26 and $27 per share, I see this company falling to $25 over the next week or so. That level – $25 per share – is the line in the sand. I expect it to hold at first, but eventually to break to the downside; unless we see a miraculous turnaround in the entire metals complex. That’s not likely.
There’s very little in the way of support between $25 and $10, so once the bears push this stock below $25, it could fall as low as $10 per share like lightening. That move could provide windfall profits for anyone with bearish positions in this stock.
I’m keeping a close eye on this market, so stay tuned for more updates over the coming weeks.
If you’d like to know the details of the stock in our portfolios, click here.
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The one investment you may hold dear to your heart… the one investment that helps you sleep better at night, that you rely on for safety, security, and maybe even profits in a world gone mad… is about to get slaughtered.
When it happens, trillions in wealth will be wiped out virtually overnight!
To find out exactly what this investment is, click here.