On 15th March, we called on our readers to maintain short positions in copper targeting $2.75 per pound, http://www.netdania.com/Products/News/NewsStory.aspx?id=1174248%40fxWire%40NC-CT%7B%22Syms%22%3A%5B%5D%2C%22Inf%22%3A%7B%22CTR%22%3A%22%22%7D%7D&p=fxwire_dl&s=fxWire@NC-CT&t=1552642219&h=FxWirePro%3A+sell+Copper+targeting+%242.75+per+Pound+&follow=False
- We suggested, based on calculations, “that the recent sell-off in Copper, which was triggered by Copper bulls’ attempt to retest $2.96 per pound area in Mid-February, is set to continue further. The recent slowdown in the global economic activities, especially in China, which is the world’s largest consumer of the metal is weighing on price, along with supply increases over the past couple of years.”
Since then, Copper tested the resistance area once more and failed to break higher, which followed a sharp selloff, pushing the copper to our first interim target of $2.83 per pound.
- After reaching as low as $2.833 per pound, the price has reversed course and retraced some of the loss by bouncing to $2.874 per pound.
- The above chart clearly shows that the bounce back presents an opportunity to enter fresh short positions, as price actions formed a bearish Doji candle in the 8-horly chart. We would like to urge readers to maintain short positions with $2.75 per pound as the next target.
- The recent calculations suggest that copper price might decline even further and reach $2.6 per pound area, however, that is not our base case at the moment.
Caution:
- The only major threat to our bearish outlook is the Sino-American trade agreement. The price would jump higher should positive announcements on trade agreement hits the market.
