Ideal copper ETF for commodity online trading & investing
Trade rise or decline in copper prices
with commodity exchange traded funds
Copper ETF is one possibility how to trade or invest into this commodity. This commodity ETF tracks copper prices - currently the Copper High Grade futures contract traded on the COMEX. I have this commodity exchange traded fund in ETF List I actively monitor and trade in my ETF Trading strategies.Copper prices are well mentioned in latest stock market news as many investors tend to use copper prices as important indicator of economic activity. Well it can be useful for global macro economic overview for every investor. Prices of copper or copper stocks are also mentioned in special day trading news that are read by traders that do commodity day trading. Information about price of this base metal is quite useful for commodity online trading that could be also performed in longer term period by swing traders, position traders or active investors that could hold position for few months.
Ideal exchange traded fund for copper commodity online trading
This base metal exchange traded fund I have mentioned above has symbol JJC and is traded on US Stock exchanges.Here is chart of this commodity ETF JJC:
Ideas for trading commodities online with Copper ETF
I like to use my relative strength analysis when I prepare trade setup for this commodity ETF. I monitor general strength or weakness of global commodity sector . I use commodity exchange traded fund with symbol DBC.Here is chart of DBC
Next I compare it with industrial metals ETF (symbol DBB) which is one of commodity exchange traded funds. This commodity ETF trackes several industrial metals - aluminum, zinc and copper (grade A). You can use it as a proxy to trade these metals. Chart of DBB:
When I apply
relative strength method
I try to find if copper should be traded on long side, on short side , or does not be traded at all. As you can see from charts above, this commodity exchange traded fund is relative weak to general commodity index. So I think about initiating short sell trade in this commodity etf. There is strong resistance near 55-56 USD level. I see two possible ways how to trade this short selling opportunity. First one is to wait for pullback to the resistance area - 55 - 56 level. As soon as you will notify reversal candlesticks in this area you can initiate short selling of JJC with stop loss level above resistance 56.50 - 57.00 USD. If the trade will develop as expected, i.e. price of JJC will drop, then you should move your
stop loss
level lower. Second possible entry point into this short selling trade is when price of this commodity ETF will break down from pullback channel represented by
bear flag
. There is also possible to see bearish stock chart pattern
Head-and-shoulders
on weekly chart of JJC above.
Return from Copper ETF back to Commodity ETFs
Return from Copper ETF back to simple-stock-trading.com
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