Daily Market News - 31st March 2022
Time To Dig Into Copper Miners?
It’s been great couple of weeks in Tech and many of the recent beaten down names, many thanks to those who reached out after picking up my work on the 17th March where I made a bottom call HERE, congrats to all the dip buyers.
In this weeks letter, I’m going to make the case for an area of the market that many just don’t think to look. Copper.
I know what you’re thinking, it’s a “boring” area of the market, but if you’re looking for uptrends and relative strength… what’s not to like?
The charts are starting to look interesting so lets take a look at them.
COPX and CPER
As the charts show, the copper ETF’s have been consolidating nicely over the last 9 months, and while they could continue to base for a bit longer, I like to pay attention when we start going out at closing Weekly highs, the Copper Miners (COPX) did just that last week, so if copper is going to make a move and break out from these consolidation patterns, now would be a logical time for it happen.
On the flip side, if they fail to follow through, that’s a problem.
1 of the stand out names in the space is breaking out, so lets take a look at it.
Freeport McMorran (FCX)
Freeport McMorran was sent to our members and clients last month as a buy at $46, it’s already +10% and with a favourable risk: reward proposition and a nice looking base break out, as long as we’re above $46, I think the balance of probabilities favours the bulls, and I have a target of $72ish.
(Premium Members) - The trade is already risk free (stop loss now placed at original entry price) so it’s now a free ride.
I think it merits a little due diligence.
If you missed our weekend analysis on Saturday where I laid out 20 individual names, feel free to check that out below.
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