Major Bullish breakout in precious metals and copper

There are many good signs for a major bullish breakout in the beaten down precious metals, energy and commodity sector which may be bottoming as the general equity, bond market and US dollar appear to have recently topped a couple of months ago. 

Rising interest rates and the specter of higher inflation with anemic growth in the US could cause a return to the deeply discounted commodity sector. 

I have encouraged patience in our wealth in the earth sectors and continue to search for the highest quality situations where we witnessed major gains despite an incredibly challenging bear market in mining.

Technically precious metals could be on the verge of a major breakout.  Gold is breaking above $1221 and its 200 day moving average.  I believe it could test January highs at $1310 in the next few weeks. 

I am closely following silver and the increased volume breakout at the 200 day at $17.15.  If it can clear that the next test is $18.25 which was the January high which could be hit this summer.  Copper looks very strong holding the 200 day moving average as the 50 day rapidly moves higher attempting to make a bullish golden crossover.  Look for this to take place over the next month. 

Similarly, I think oil could bounce to the 200 day moving average following copper which would be around $68.  Currently its trading around $60.  Watch the uranium mining ETF which is quite possibly breaking through major resistance at $12.15.  Investment dollars are clearly coming back into mining, metals and energy.  Mining is not dead and still leads to the best outsized gains if you do your homework as evidenced by two of our top recommendations in 2014.

Two of my Junior Mining Stocks lead the entire OTCQX in 2014, a global marketplace with over 10k public companies in all sectors. This is amazing as it occurred during the worst bear market in mining history and the huge bubble in biotech, housing and financials.

I wish I could say it was good luck, but the skill to pick the best has been crafted for over 20 years of following the junior mining markets. 

Despite this macro trend against wealth in the earth assets two of our featured companies rose to the top of the entire marketplace.  Anyone can make money in stocks during a bull market, but being a good stock picker during a bear market separates the professionals from the amateur.

About the Author

Jeb Handwerger is editor of Gold Stock Trades.