Commodities have been a “hot mess” as a group with the exception of a few trends that we’ve been taking advantage of.
The last time we talked about Base Metals were in July, when we were looking for a bounce in Zinc.
Today, let’s take a look and see if anything in the space has changed.
Unfortunately…our Chart of The Week suggests that little has changed for Base Metals. Here’s a weekly chart of Nickel failing at 8-year-long resistance near 1,300 and breaking back below the downtrend line around 1,050. If the strongest Base Metal is failing to break out, then we’re likely not in an environment where we want to be buying any of them.
Click on chart to enlarge view.
On the other hand, Precious Metals are consolidating their recent gains well after a structural breakout several months ago. Not something we’re expecting to move in the near-term, but a structural uptrend to keep an eye on as long as prices are above 37,000 and momentum remains in a bullish range.
The Bottom Line: Base Metals are not an area we’re interested in as most remain a sideways mess. Maybe one day they’ll be interesting again, but it doesn’t look like that day will be anytime soon…at least for our timeframe.
Thanks for reading and let us know if you have any questions!