Copper is preparing for the breakout

2 Nis

Copper is setting for a breakout after a record high for the PMI index from ISM, published on Monday. That might be a game changer for commodity markets, as it might point to a production recovery and give relief against the recession narrative.

Some commodity markets are already moving (such as Crude oil, Gold, or Cocoa), while others are consolidating around possible intermediate-term dips.

Copper emerged from a trading range not so long ago, and after having retraced to the 20-day moving average, displays a strong responsive buying activity.

So, one may consider a momentum trade with a further expansion, as shown in the chart.

Manage your risk at all times!