| For many commodity traders there are few correlations as strong as that of base metals and global stock markets. As you can see from the chart of the Powershares DB Muli-Sector Commodity Trust MetalsFund (DBB), a common measure used to track metals such as aluminum, zinc and copper, you’ll see that the bears recently sent the price below the support of a key trendline.
Notice how the confined trading range has controlled the price of the ETF since late 2011. At this point, the recent break below the support level suggests that the momentum is likely to increase and that a sharp move lower could be in the cards. From a risk management perspective, bearish traders will likely look to protect their positions by placing a stop-loss order above the upper resistance level, which is trading near $14.33...............................................Full Article: Source
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