The price of copper looks poised to make a big move, soon. And, I’ll bet that move is to the upside.

Take a look at this chart…

The price of copper peaked at $3.30 per pound back in early June. Then, the market got spooked over trade-war tensions and a possible supply glut caused by slowing demand from China.

Copper crumbled all the way down to $2.55 per pound in August. That’s a 23% drop in just two months.

Since then, though, the price of copper has been slowly, quietly moving higher. The chart now looks to me like it’s setting up for a bullish move. And, I really like the coiling action in the various moving averages.

Copper broke above its 50-day moving average in late-September, thereby starting what I think will prove to be an intermediate-term uptrend. Both the 9- and 20-day EMA have rallied above the 50-day MA as well. So, the moving averages are stacked in a bullish configuration.

The price of copper has been slowly drifting lower since the breakout. Copper is now trading just slightly above its 50-day MA. All the moving averages are coming together and building energy for the next move. And most of the technical indicators have drifted back to neutral territory. So, I like this setup for a sharp pop higher in the price of copper over the next week or two.

It may or may not play out this way, of course. But, the setup looks bullish to me.

Investor sentiment towards copper also seems to have soured enough to be a good contrary indicator. Most analysts are bearish on the price trend in copper. And the handful of trader friends I’ve mentioned this to seem ambivalent at best towards the idea of buying copper.

So, I like my odds on this bet. And, if it’s going to play out bullishly, then copper should start a new move higher within the next two weeks.

Best regards and good trading,

Jeff Clark

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