While most analysts freak out on falling metals prices, we for one see opportunity. In fact, if you wish to diversify from the noise of trading the most commonly traded instruments like the index futures or for that matter the top ranking commodities with impressive relative volume like WTI Crude or Gold, we suggest taking your sights elsewhere where opportunity may exist amidst falling prices. As traders, we need to recognize and trade "Value" and not just "Price", and the latter in our opinion is merely a label placed on the value of the commodity you may be aiming to acquire.
Infrastructure improvements in the US is still in the cards, and in the middle of all the other political drama unfolding virtually everyday, we still have that dangling in front of us. Any major spending decision by the US Government should work well for Copper. What we present here as a trade idea, is purely a swing trade idea so be prepared to encounter some drawdowns if you elect to place your chips in a tad bit early. You could trade while equating the price points we place below for the December HG futures contract to front-month contracts and make your decision on entry to work past futures rollover dates. So here is the trade idea. Note that in the chart we have a short that is currently trading the profit targets for which lands you right into the long entry suggestion below:
Supporting chart
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