Copper Scrap Metal Prices
Wilson Metal Recycling
404 Maury St. S
Wilson, NC, 27893
Tel 252-243-3586
CNBC's Cramer had a guest on to talk about copper. See the link below and see the article.
Greg Brown
gbrown@wilsonncscrapmetalrecyclingjg.com
252-243-3586
http://www.cnbc.com/2015/07/16/cramer-why-copper-gold-are-ready-to-shine.html
Jim Cramer continued Chart Week this week to touch base with some of Mad Money's best technicians and learn more about their mode of analysis and what the future could hold for stocks.
That is why Cramer spoke with Carley Garner, a technician and co-founder of DeCarley Trading and author of "A Trader's First Book on Commodities." She is also Cramer's colleague at RealMoney.com.
Cramer has always said that copper is an important metal that could provide investors with a great read on the state of the global economy, as well as gold which hit an eight-month low on Thursday. He uses copper as a reading especially for China.
Do investors need to have a stomach of steel to invest in these metals, or could it be time to consider a bullish position?
Copper has been on a massive downtrend for months now, but when Garner looked at the charts she thought that maybe the downward slide could be coming to an end. Copper has traded above $2.40 for the past decade, with exception of the financial crisis in 2008.
However, this week brought some volatile action which resulted in the price dropping to $2.38 and quickly reversed into the mid $2.50s. What does this mean?
"For now I'm thinking that $2.40 is going to hold, and if it does then we will run into some resistance at $2.80," Garner said.
Additionally, if the price gets above $2.80, then Garner predicts a massive rally for the bulls, up to even the $3.80s.
One of the reasons why Garner thinks copper could be on an uptrend is because of the seasonal tendencies of it in the past 20 years. Copper has a tendency to trade weaker in the beginning of June, and bottom by early July. Looking at the monthly chart, Garner also sees that it is poised to rally until the end of August.
And while gold obviously has much different fundamentals, Garner saw good news ahead for this precious metal as well. Many investors steer clear of gold because it doesn't have much activity or pay dividends.
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However, Garner thinks that what is important to note about it is the fact that speculators are always long gold and rarely hold a short position. At the moment, there is a small bullish position building in gold, which tells Garner that the market could start heating up again.
"A lot of the weakness in gold has been 100 percent due to the dollar. So, that is a big factor here," Garner added.
Ultimately, Garner said the key level to watch for gold is the support around $1,125 to $1,120. If the price can break above $1,230, that could trigger to make the bulls happy all the way up to $1,305 or $1,400.
