FxWirePro Call Review: Maintain longer-term bearish outlook in copper with $1.7 per pound as target

Early in February, we warned our readers that copper could suffer a further decline as it declined steadily in five out of the six weeks since reaching $3.32 area in December. We warned that the next move downwards could come as a sharp selloff after the next bounce. Here is the link to the article, https://www.econotimes.com/FxWirePro-Copper-might-face-sharp-selloff-after-next-bounce-to-reach-278-per-pound-1140489

And in March, we called on our readers to go short on Copper and shared the recommended profit booking plans, at the then current rate of $3.177 per pound with stop loss around $3.32 per pound and target of $2.78 per pound and advised to book 50 percent profit at the interim target around $2.88 per pound. Here is the link, https://www.econotimes.com/FxWirePro-Call-Review-Sell-Copper-targeting-278-per-pound-1160929

Copper has reached our target and beyond and we believe that it would soon reach our extended target of $2.55 per pound, https://www.econotimes.com/FxWirePro-Call-Review-Copper-might-decline-to-as-low-as-255-per-pound-1225885

In our last review, based on our calculations and models, we downgraded our outlook for Copper from bearish to very bearish over the longer horizon with $1.75 per pound as the target price.

Fundamental Review:

The current fundamentals remain extremely favorable to Copper as the trade war between China and the United States continue to intensify and slowly a portion of the damages being done to the Chinese economy have started surfacing. We continue to expect the trade war to hit China hard and thus hurt the demand for copper.

Trade idea:

We would urge our readers to maintain a bearish outlook over the longer horizon and use rallies as opportunities to add short positions. The copper is currently trading at $2.72 per pound and the recommended call is well in the money. We expect any bounce back to remain capped below $3.15 area per pound.