(Commodities Weekly) These Lines Dance Together 🕺📈

Copper futures have so many tailwinds working for it right now. We think it's ready to breakout to new all-time highs.

We've talked about the strong positive correlation it has with Chinese stocks. This remains the case. 

In addition, base and industrial metals have been ripping. Just look at the setup in Aluminum futures. 

We think it would make sense for Dr. Copper to lead its peers higher. This has already been playing out in precious metals.

The shiny yellow rock has been leading its peers higher, and now Silver futures are a stone's throw away from multi-decade highs. 

Gold futures hit 3,000 for the first time to make things even sweeter. Surpassing this significant number should help fuel the animal spirits.

These lines dance together 🕺

As you can see, Gold and Copper are nearly identical charts. The only caveat is one is making new all-time highs while the other isn't.

It would make a ton of sense to see the red line follow the golden line. Don't you think?

That's the bet we're making.

Here's the setup 👇

We first got long Copper futures in January when the price tested a well-defined level of former support. 

Sure enough, the buyers stepped in right where we expected them to and drove the price higher to our first target.

Based on the technical setup, we think this could be the beginning of a much larger move.

We're adding to our Copper position on a close above 5, with a target of 7 over the coming 3-6 months.

Do you trust the Homies or Lumber? Let us know what you think.

Commitment of Traders Highlights

• Commercial hedgers trimmed 4,300 contracts from their net-long Brent Crude position, and they look poised to flip net-short soon.
• Commercials added nearly 7,000 contracts to one of their most significant net-short Silver positions in the last 3-years.
• Commercial hedgers extended their largest net-short Japanese yen position ever by over 6,400 contracts.

👉 Click here to download the All Star Charts COT Heatmap

Commodities Trade of the Week

This week, we're outlining the $3.7B Peruvian mining company, Buenaventura.

The company mines for basically all of the futures products we mentioned above. Materials like Gold, Silver, Copper, Lead, and Zinc. 

They hold a significant stake in a mine called Cerro Verde, one of the largest Copper mines in Peru. This is significant because Peru is the world's 2nd largest producer of Copper.

In addition, the stock is in the process of resolving a textbook bearish-to-bullish reversal pattern. The risk is incredibly well-defined, and the upside potential is fabulous.

Here's how we're trading BVN 👇