Copper price promises better investment
July 16, 2008 Filed Under: Copper Mining, Lead Mining, Mining Services
Most investors have focus on mining sectors like oil, coal and steel price. Copper which is so far hasn’t been able to attract investors’ attention recently started to steal some investors’ attention with its better price in the market. copper prices have quietly hung in and held the breakout in the weekly chart. The persistent strength in copper is at odds with the relatively weak behavior of the copper mining stocks since the beginning of June, but the mining stocks have pulled back to some interesting support levels and traders may want to take another look at the group on the long side.
The fact that the base metal stocks have been consolidating since the beginning of the year may help traders on the long side. The energy, coal and steel names have had great runs this year, but traders have been liquidating these stocks as the last holdouts on the upside during the recent decline. The copper stocks have already seen a pullback, and the recent action in the group has been relatively benign compared to the leadership names in the commodity related sector.
Those trends have stimulated more plans on copper exploration. The up side down oil price and other commodities are the major causes investment trend slightly moves to this particular field of mine exploration.