Copper ETN Looks Ready To Bounce

Buoyed by increased stockpile bookings and a bullish earnings report from Freeport McMoRan FCX, the iPath DJ-UBS Copper TR Sub-Idx ETN JJC looks like it has broken out of an inverse head and shoulders pattern. London-traded copper is up for the fourth consecutive day amid the 25th straight day of declining inventories. Futures for September delivery gained 1.8 percent to $3.1475 a pound on the Comex in New York, Bloomberg News reported. Orders to take copper out of London Mercantile Exchange storage facilities have increased for three straight, bolstering the bullish case for JJC. On Wednesday, Freeport shares jumped 3% after reporting a 10% increase in second-quarter profits. If JJC can clear the 200-day moving average just above $43, the ETN has plenty of room to run to the high 40s before encountering its next resistance area.