Base metals were remarkably strong in 2016. After a collapse the year before, they rose sharply, to fully recover their previous losses. But the base metals chart suggest to investors that February 2017 will be crucial.

Below we show the base metals ETF DBB which is an index made up by the prices of copper, aluminum and zinc.

The chart says it all: multi-year resistance is being tested. After a steep rise of 50% in 2016, it will be very tough for base metal bulls to go higher from here … but never say never. A break above resistance will be bullish and lead these metals 15 pct higher before the next stop.

The chart not only shows that base metals are testing multi-year resistance right now, it also highlights the next resistance level at around 18 points. If base metals go higher from here, the next stop will likely be 18 points. Once above that price level we would see a raging bull market. Investors keep a close eye on both resistance area’s to get a clue about future price direction in base metals.

InvestingHaven’s research team has been very bullish on copper, and rightfully so as the price of copper and copper miners did remarkably well last year. Right now, the copper market is trading right at a pivot point, and the market needs to confirm a direction. Though the copper price chart looks spectacular, it needs to push higher right now in order to get bullish. If it fails to do so, a lower high would be set, and that is obviously bearish.

Investors in base metal miners are watching closely what copper, zinc and aluminum does in February. Those prices will determine largely the direction of base metal miners.