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.