Goutdated ETFs actually held their shine in 2020, as did different valuable metals like silver. 202
Goutdated ETFs actually held their shine in 2020, as did different valuable metals like silver. 2021 although could be the 12 months of copper and the World X Copper Miners ETF (COPX), which is already up 13% year-to-date.
COPX’s 3-month chart beneath, we are able to see a bullish uptrend already forming in This autumn of final 12 months. COPX gained over 60% because the fund spiked close to the tip of November:
“Copper costs continued their momentum from the second half of 2020 because the second wave of coronavirus infections intensifies in South America, the world’s high copper-producing area,” a Mining.com article defined. “Copper futures for March supply superior 0.3% to $3.652 per pound on the Comex, surpassing a close to eight-year excessive set in December.”
“Copper costs have rallied over current months as demand for the bellwether steel grows on the again of fiscal stimulus hopes and restoration in industrial actions, however rising covid-19 circumstances and lockdowns have additionally prompted a provide crunch for probably the most traded steel commodity of 2020,” the article added additional.
COPX seeks to supply funding outcomes that correspond typically to the worth and yield efficiency of the Solactive World Copper Miners Complete Return Index, which is designed to measure broad-based fairness market efficiency of world firms concerned within the copper mining trade.
COPX provides buyers:
- Focused Publicity: COPX is a focused play on copper mining.
- ETF Effectivity: In a single commerce, COPX delivers environment friendly entry to a basket of firms concerned within the mining of copper.
Copper: Time to Purchase?
Patrons seeking to get in on COPX can use technical evaluation to assist decide whether or not a shopping for alternative is in play. its one-year chart beneath, we see that COPX is at the moment 34.40, which is sort of 30% above its 50-day transferring common.
The query now’s whether or not the chance is overheating. After we apply a relative energy index (RSI) indicator, it certainly does present that COPX is inside overbought stage territory. Utilizing a transferring common convergence divergence (MACD) filter, the exponential transferring common (EMA) line is previous the sign line, so potential consumers could need to wait till the EMA crosses beneath the sign line.
Nonetheless, there is not any query that momentum is on the facet of COPX.
For extra information and knowledge, go to the Thematic Investing Channel.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.