Copper’s Technical Breakout Test Is Happening Right Now (JJC)

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June 8, 2017 10:32am NYSE:JJC

From Chris Kimble: Ole Doc Copper hasn’t done too well over the past 6-years, as it has created a series lower highs since 2011.

Over the past 18-months, Doc has been attempting to create a series of higher lows in the chart below:

Copper appears to be creating these short-term higher lows inside of rising channel (1) and (2). Rising support channel (2) is being tested and short-term falling resistance is in play at (3), creating a short-term pennant pattern.

Below looks at Copper over the past 30 years:

Copper has spent the majority of the past 30-years, inside of rising channel (1), where support was hit 18-months ago and the series of higher lows got started. It has spent 100% of the past 6-years inside of falling channel (2).

For the past 6-years, Doc Copper has let down the bulls, as it has peaked at falling resistance, as resistance is resistance until broken. To send a positive message to the bulls, it needs to breakout of falling resistance at (3). If it does breakout, I will look to be a buyer. This is where Copper has peaked year after year, will it be different this time?

On the ETF side of things, the iPath Bloomberg Copper Subindex Total Return Sub-Index ETN (NYSE:JJC) was trading at $29.47 per share on Thursday morning, up $0.54 (+1.87%). Year-to-date, JJC has gained 2.43%, versus a 9.00% rise in the benchmark S&P 500 index during the same period.

JJC currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #29 of 127 ETFs in the Commodity ETFs category.

If you would like to have Power of the Pattern chart analysis sent to you each week, we would be honored if you were a Premium or Metals member.

This article is brought to you courtesy of Kimble Charting Solutions.

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