(Commodities Weekly) Feeling Under The Weather? Go See Dr. Copper⚕️😷

Did you know China outperformed the United States stock market in 2024? We have the data.

We think this relative strength will persist, and if that's the case, don't forget about copper!

We discussed the long-term positive correlation between Chinese equities and copper futures a few months ago. 

Why does this relationship exist?

China is the world's largest consumer of refined copper and accounts for over 50% of global consumption. 

If one is going to work, so will the other.

More importantly, copper futures are testing a key level of interest:

Copper futures are potentially carving out the right shoulder of a multi-year inverted head and shoulders pattern.

This consolidation is happening in a primary uptrend: from 2020 to 2021, copper futures rallied nearly 150%. 

While we wouldn't be surprised to see a whipsaw lower in the short term, we believe the long-term trend is higher. 

In other words, the risk vs. reward is skewed in favor of the buyers.

We're buying copper futures above 4, with a target of 7 over the coming 6-12 months. 

A close above 5 would confirm the resolution of this basing pattern and our target is the measured move of the basing pattern.

Are you buying copper with us? Let us know what you think.

Due to the holidays in the United States, the Commitment of Traders report will be released next week. ⏳

Commodities Weekly: Trade of the Week 📈

Today, we're outlining Range Resources $RRC, an $8.7B independent energy-producing company.

It's primarily focused on producing natural gas, natural gas liquids, and crude oil from the Marcellus Shale in Pennsylvania.

The stock rallied over 2,000% from 2020 to 2022, and we're betting it's on the cusp of resuming the primary uptrend.

It also doesn't hurt to have natural gas screaming higher, which benefits the company.

Here's how we're trading $RRC: 👇