Over the past couple of days copper has broken strongly higher, and while copper itself may be of little interest to most of us, the implications of this development are profound for the base and Precious Metals sectors. Copper is an important lead indicator, which is why it earned the moniker “Dr Copper,” and since it now looks like it is starting a major bull market, this is a sign that a major bull market is about to begin across the entire metals sector, which as you know is what we are looking for in gold and silver. Silver in particular is gruesomely undervalued and has huge upside potential from here.
On its 8-month chart we can see the impressive breakout move in copper of the past couple of days. Everything about this chart is bullish, with the advance being supported by strong volume and positively aligned moving averages.
The iPath Bloomberg Copper Subindex Total Return Sub-Index ETN (NYSE:JJC) was unchanged in premarket trading Friday. Year-to-date, JJC has gained 13.76%, versus a 11.61% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Streetwise Reports.