We wrote in our copper price forecast 2017 that copper should hold $2.10 in order to move higher in the coming months. We clearly identified $2.10 as a make-or-break level; a break below that price would suggest a very bearish 2017.
Only three weeks after we wrote that piece, copper chose a clear path: it successfully tested $2.10 and moved towards $2.30 the critical resistance price level which we identied as well. Since then, things evolved extremely fast, as resistance was already broken today, and, with that, we can clearly see a text book breakout pattern.
As the daily chart suggests, see below, this breakout has an important meaning. Copper has been consolidating for a year now, and a break out of such a consolidation area is an important event. It suggests there is sufficient bullish energy in the copper market.
Playing this uptrend is possible through copper futures which are only recommended for very advanced traders. We suggest playing the copper stocks, in particular Freeport McMoran with the symbol FCX. This stock moved up +5% today, and it is also close to a huge breakout. We see FCX easily double from here, in case copper meets our target of $3.00.