Equity bulls want copper ETFs to join in the rally since the industrial metal is seen as a leading indicator for the global economy.

The iPath Dow Jones-UBS Copper ETN (NYSEArca: JJC) rose this week after touching an eight-month low on Aug. 2. The copper exchange traded note, which is designed to track copper futures, is close to its 50-day moving average.

“Given that ‘Dr. Copper’ is one of the better indicators of investor confidence in the global industrial economy, this relative weakness may be suggesting rising doubts about prospects going forward,” writes Robert Colby at TraderPlanet.

Copper is facing an important technical test and a key support line that needs to hold.

A “flag” pattern is nearing completion in copper futures, with a potential head-and-shoulders topping pattern overhead, writes Chris Kimble at Kimble Charting Solutions.

“With these patterns at hand, a break of neckline support would see a good deal of sellers step forward and push copper lower,” he said.

iPath Dow Jones-UBS Copper ETN

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.