The Golden Touch:

The materials are a group that has received little respect as of late. That narrative may be botched as it sports the second best performance among the 11 major S&P groups in the last month, AHEAD of technology fractionally, but below the utilities. The XLB still trades 11% off most recent 52 week highs, and like may other ETFs is having a tug of war with its 200 day SMA. It has been aided by strength in gold related plays, but chemicals are helping boost the bottom line. If the fund can clear the 200 day decisively, a double bottom base is setting up with a potential pivot of 61.26.

Copper Swag:

It is hard to get excited about a beaten down former leader, that has been dead money for some time, to put it very nicely. FCX trades 36% off most recent 52 week highs, and was rejected at its 200 day SMA last month. Those who missed the break above a bullish inverse head and shoulders pivot of 12.50 on 2/19 which jumped nearly 7% in big trade, may be getting a second chance here. Keep in mind it is very common for breakouts to be retested for their validity, but let’s keep a tight lease on this play as it is far from a leader. The scenario does off decent risk/reward however, with the measured move to 15.50. It is receiving some wind at its back from a decent copper move this year.

This article requires a Chartsmarter membership. Please click here to join.