Emerging Markets, Copper Breakouts In the Cards?

by Sheldon McIntyre on February 4, 2013

By Sheldon McIntyre
In the weekly charts shown below, Copper prices appear to be breaking out to the upside. Supporting this thesis is Copper’s strong correlation to Latin America (and the Emerging Markets). In short, a Copper breakout, coupled with a Latin America (shown below as Merrill Lynch Latin America Fund) breakout, would be bullish for Emerging Markets. And the Emerging Markets have been consolidating for the past four weeks, looking primed for a move to the upside.

Stock Charts, Chartology, See It Market, seeitmarketAs always, follow through will be key – especially for a Copper breakout. See charts below (and note that they are weekly charts).

Copper / Merrill Lynch Latin America Fund Weekly Charts:

copper breakout

Emerging Markets Weekly Chart:

copper breakout with emerging markets

 

Twitter:  @hertcapital    @seeitmarket

No position in any of the securities mentioned at the time of publication.

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