Copper breaks out: Are you positioned?

This week’s big event in commodity markets has been copper’s fierce breakout into new all-time highs.

That’s caught a lot of investors and traders off guard.

But for my readers, they understood this event was imminent!

This is what I wrote in last week’s Fat Tail Daily edition ahead of the huge 10% move in copper futures on Tuesday:

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Gold is the ONLY commodity that has broken into new all-time highs in this cycle.

Yes, we’ve had price spikes in things like uranium, silver, platinum and rare earths.

But what matters here is the historical breakout event, exclusively limited to gold.

Gold has now pushed well past its major resistance set in 2011, the peak of the last commodity cycle.

So, why does that matter?

If you believe and understand my theory, you’ll know that gold leads these big commodity-cycle events, with other metals following higher, eventually.

And importantly, gold confirmed this signal in 2024.

We’re now one year on from that milestone event.

So that means we should be seeing other commodities starting to press higher and threaten ‘their own’ all-time highs.

And that’s precisely what’s happening!

Copper: on the precipice of a historical breakout

Remarkably, copper is again just a smidgen away from becoming the next major commodity to break past its all-time high from 2011:

First gold, now copper.

The last time copper did this was EXACTLY 20 years ago, back in 2005.

I’ve circled that event on the chart above.

But another interesting aspect here is that these key resistance levels have the potential to unleash powerful price moves in commodity markets.

Copper surged 140% in less than 18 months when it last broke its multi-year resistance level in 2005.

I doubt anyone considers this remotely possible for today’s market.

But that’s what these powerful ‘technical’ levels can unleash.

In 2005, the copper ‘breakout’ generated a surge of excitement across the resource market, especially among junior mining stocks.

It was the crystallising event that kick-started that last commodity cycle.

And the catalyst that finally drove speculation back into junior mining stocks.

And that’s what I’ve been preparing my paid readership group for this year: a potential repeat of what occurred in 2005.

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You can read the full piece from last week, here. 

And with Trump’s 50% tariff announcement on copper imports, futures finally did what I’ve been anticipating for quite some time…

They ripped into new all-time highs!

This week’s massive 10% move in the futures market sent copper prices on the New York COMEX into a technical breakout, as you can see below:

Becoming only the second metal in this cycle (after gold) to push firmly past its historic top from 2011.

As I stated last week, this is the set-up I’ve been preparing my paid readership group for.

Across my two services, we have around eleven stocks directly leveraged to copper, it forms a major portion of our overall positioning in the commodities market. 

From large producers down to the early grassroots explorers. 

So, it’s fair to say we have a lot at stake here!

If Tuesday’s breakout continues, we’re locked, loaded, and ready to profit.

Why copper can go a lot higher from here

As I detailed, the last time copper broke multi-year resistance was in 2005.

After that, prices went parabolic, up around 140% in 18 months.

Junior mining stocks followed with heavy triple-digit gains.

It’s now a matter of watching and waiting to see how resource stocks follow copper’s bullish move.

Technical breakouts of this magnitude can unleash serious speculation into the junior mining market and 2005 offers perhaps the best blueprint for what could happen next.

You must be alert to the risks, but equally prepared to take full advantage… One way you can do that is by joining me, at Diggers & Drillers.

On Wednesday, we just issued a new recommendation for a copper producer.

A company that owns one of the world’s largest high-grade copper deposits and boasts one of the best operating margins in the business.

Yet, until recently, this company’s share price was almost 50% off its all-time highs. This is an opportunity to capture deep value in a market primed to move higher. 

You can access all the details here.