Copper prices are showing strength today, and in general of late. And strong copper prices tend to bode well for the Materials Sector (NYSEARCA:XLB).
Not only is copper a key metal tied to material stocks / companies, but many believe that is an important indicator of strength (or weakness) in the overall economy.
In the chart below, I take a look at the Basic Materials ETF (XLB). It’s a 3 year chart that highlights a bullish ascending triangle pattern and materials sector breakout (points 1 & 2).
The breakout level is a important to watch, as it should hold if this is for real. So far, so good. And if both continue to move higher, it would bode well for the sector… and the economy.
$XLB Basic Materials ETF Chart – Breakout!
Twitter: @KimbleCharting
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
