ETF Trends
ETF Trends

The iPath Dow Jones-UBS Copper ETN (NYSEArca: JJC) rallied more than 6% on Friday after the better-than-expected jobs report for April. The beaten-down commodity could be set up for an extended bounce since so many traders are bearish on copper.

“Base metals are seeing a wave of short covering here on the back of non-farm payrolls — copper is leading the way,” a metals trader told Reuters.

The copper exchange traded note has rallied the past two days after falling to its lowest level in nearly three years. [Copper ETF Drops to Lowest Since June 2010]

Copper prices on Friday were on track for their biggest daily gain in almost 18 months, according to Reuters.

Kimble Charting Solutions points out a bullish technical situation in copper that could lead to a sustained rally. The commodity fell to a key support line just as sentiment on copper collapsed to levels last seen at the 2009 financial crisis lows.

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.