Commodities investors should watch very closely what copper is doing at the current price level. The price of copper is now trading exactly at a secular breakout point. Do not underestimate the consequences if this breakout will take place. As explained in Copper Price Forecast: Is Copper Ready To Start A New Bull Market In 2016? copper will enter a new secular bull market if it trades for at least 2 to 3 weeks above $2.6.
Historically, copper has proved to move very fast. It is able to double in price in 9 to 12 months. We do not exclude such a scenario in 2017, provided that the copper price remains above $2.6 going forward. In such a scenario, the copper space will be on fire. Miners like Freeport McMoRan (FCX) will go ballistic.
Keep a close eye on copper in the coming days and weeks.
