After shown signs of big rallies ahead, the demand concerns in China and ever-growing supplies of the red metal has depressed the price of the copper, which has declined from $2.81 per pound to $2.59 per pound as of now. We recently forecasted the price to move up at least in the near term and reach as high as $3.2 per pound, moving away from our more than a yearlong bearish outlook.
However, as concerns with regard to the demand in China emerged again, along with subdued expectations of a quick increase in infrastructure spending in the United States, the copper bulls gave up some grounds. Still, we suspect that this is a regular correction and the price might find wings in the second half of the year and reach the stipulated target. The copper is likely to test support now around $2.55 area and we suspect that it won’t break through. As of now, we do not see any major threats to our stop loss which is around $2.42 area.
