- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted July 10, 2025 at 9:28 am
1/ Copper Price Posts New All-Time High
2/ Chart Perspectives on CPER
3/ Relative Strength Perspectives on CPER
Investopedia is partnering with CMT Association on this newsletter. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.
Copper Price Posts New All-Time High
On Tuesday, July 8th, President Trump announced a 50% tariff rate on copper, double what he had previously floated for the valuable commodity. This would bring tariffs on copper into line with other industrial metals including steel, and aluminum. Trump’s announcement sent copper prices soaring, and the metal posted its highest single-day gain since 1989. The copper futures contract for September closed Tuesday up 13%, at $5.6855 per pound.
One way to position for a continued bullish advance would be to go long the United States Copper Index Fund (CPER) , which seeks to track the daily investment results of the SummerHaven Copper Index Total ReturnSM, designed to reflect the daily performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange.
Chart Perspectives on CPER
The shares of CPER have resolved above a five-year classic patterned base formation of the “Head & Shoulders” variety. The bullish inflection above $32, if sustained, clears the way for a projected measured move to approximately $41 [($30 – $19) + $30 = $41], equating to a potential 21% gain from current levels. Momentum has turned up on multiple time horizons supporting the notion that the advance is still early in its trend. Point & Figure analysis projects a higher target of $49 using the 3-box reversal method.
Relative Strength and Trading Perspectives on CPER
The shares of CPER are leading the Basic Materials sector, the broad Commodities index, the Base Metals index, and the S&P 500 index YTD. Its weekly RS-Ratio rotated into the weakening quadrant, but its RS-Momentum has since turned sharply higher and appears poised to rotate back into the leading quadrant over the next few weeks.
Copper futures are currently attractive due to tight global inventories, ongoing mine disruptions, and rising demand from green energy and electrification projects. Geopolitical factors, such as new U.S. tariffs and trade tensions, are adding to supply concerns and driving prices higher. Additionally, a weak U.S. dollar and low stockpiles in key markets are supporting bullish sentiment, while technical and structural factors suggest the rally could continue.
In our opinion, CPER represents an attractive candidate for new money equity allocations. A limit of $34 on the entry price combined an initial stop-loss provision set at $31.50 would limit downside risk to about 7.4% of capital deployed and establish an attractive 3-to-1 positive risk skew.
—
Originally posted 10th July 2025
Investopedia.com: The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy. This information is intended for US residents only.
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Investopedia and is being posted with its permission. The views expressed in this material are solely those of the author and/or Investopedia and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, please read the Security Futures Risk Disclosure Statement. For a copy visit ibkr.com
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!