FxWirePro: Long-term buy for Copper targeting $4 per pound

Years of low price pushed the companies in copper mining to use ‘high grading’, which is mining of easily available, high-grade materials in order to maintain the margin and production cost low. However, as the price of the copper started recovering since 2016, due to higher demand and lower supplies, the miners have reportedly once again moved to the traditional form of mining.

Since October 2016, the price of copper has increased almost 57 percent and we expect the upward momentum in copper to continue. The economic recovery across the world and especially in China and in the United States should support the bullish outlook.

Trading idea:

• Buy Copper at the current price of $3.28 per pound and at dips with a target of $4 per pound and with a stop loss around $2.912 per pound area. We expect the target to get reached over the course of this year and next. Kindly note, despite the upward momentum there could be large corrections before the target gets reached.