COPX Not Just Cope

After several months of corrective price action alongside the precious metals and miners, copper miners have been quietly staging a resurgence in recent sessions. Granted, some individual coppers miners like FCX and SCCO have held up generally much better than the precious miners, the former finding buyers above their respective 200-day moving averages while the latter failed at their own 200-day in June. 

However, as we have been noting both here and with Members, the next bullish seasonal window for the precious complex is more towards the late-August/September interval, which means exercising a bit more patience is likely correct for gold bugs. 

That said, the COPX ETF for copper miners, seen on the monthly chart, below, bears an uncanny resemblance to the gold monthly chart insofar as bull flagging action since the winter months. Indeed, all of the back and forth, correcting, head-fakes, and generally illogical selloffs in the face of war, chaos, confusion, and now resurgent inflation as The Fed is behind the curve (again) has been frustrating to endure as gold sold off anyway in that time. 

Generally speaking, in hindsight after they have broken higher the monthly chart bull flags always look so obvious. But in real time they are often tedious in the way this has been for gold and even copper bugs this spring and summer, so far. 

Thus, as oil and soft commodities rip higher amid rising rates on the long end of the curve, we watch copper and the precious complex for signs of firming up into late-summer. So far, copper is answering the bell impressively, with SCCO catching my eye the most, though we have other plays to discuss inside the service.