Copper futures in the December contract is currently trading at 315.40 after settling last Friday in New York at 317.70 a pound up over 200 points, continuing it's bullish momentum as prices are right near a 3 year high.
Fundamentally speaking, this commodity has everything going for it due to extremely strong demand because of the housing market, which continues its torrid pace. I don't think this situation will change anytime soon as I see no reason to be short copper. If you are long a futures contract, I would place the stop-loss under the 10-day low, which stands at 3.0285, as an exit strategy. However, the monetary risk will also be reduced in next week's trade as the chart structure will continue to improve.
Copper prices are trading far above their 20 and 100-day moving average. This is the strongest member of the precious metal sector. I still think there's significant room to run to the upside as I will be looking at a possible price pullback before entering into a bullish position.
CHART STRUCTURE: IMPROVING
Silver futures in the December contract settled last Friday in New York at 25.66 an ounce while currently trading at 24.82 down about $0.85 for the trading week, experiencing tremendous price swings daily as the volatility is extremely high. Continue reading "Strong Demand Fuels Copper Futures Higher"