Copper is Approaching Make-it-or-Break-it Levels

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…

See larger image

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

See larger image

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.

How CEOs are Earning 335x MORE Than Their Own Employees

What if I told you up to 95% of companies currently trading on the stock market today are essentially stealing money right out of your pocket!? This includes some of the biggest names in the corporate world… companies that trade millions of shares a day, who you might be invested in right now!

Discover just how far the deceit on Wall Street goes and how you can still uncover many lucrative opportunities in the stock market today, in our new infographic: How CEOs are Earning 335x MORE Than Their Own Employees

LEARN MORE
Categories: Markets

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.