Copper Feels Like It’s Breaking Out: Iuorio
Last week I talked about a potential breakout in copper and this morning it appears that it received the push it needed to trade higher.
It's interesting that last week's positive data out of China was not the catalyst to move copper out of its current range, but instead it was Caterpillar's positive comments regarding the domestic housing market.
For several years the market had grown accustomed to associating copper volatility to the unfolding story in China.
Prices now are beginning to trade off the positive story in the U.S. housing market.
I expect continued buoyancy in March copper futures (hgh3) with an initial objective of 3.85. The market's behavior at this level should give us clues regarding the underlying strength of the move.