Copper Technical Analysis Summary
Buy Stop: Above 4.5
Stop Loss: Below 4.05
Copper Chart Analysis
Copper Technical Analysis
On the daily timeframe, COPPER: D1 is in a long-term neutral trend. It moves towards its upper border. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if COPPER: D1 rises above the last upper fractal and upper Bollinger band: 4.5. This level can be used as an entry point. The initial risk limitation is possible below the last two fractals lower, the 200-day moving average, the Parabolic signal and the lower Bollinger band: 4.05. After opening a pending order, move the stop-loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (4.05) without activating the order (4.5), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities – Copper
The International Copper Study Group (ICSG) reported a global copper deficit. Will the COPPER quotes rise?
According to ICSG estimates there was a shortage of refined copper in the world in the amount of 160 thousand tons, for 9 months of 2021. In theory, the global copper deficit could widen as the production of electric vehicles increases. Note that a typical modern car contains about 23 kg of copper, and an electric vehicle (Battery electric vehicles, BEV) – 83 kg. A plug-in hybrid electric vehicle (PHEV) requires about 60 kg of copper. An additional positive for copper quotes may be an increase in the Caixin China Manufacturing Purchasing Managers Index in December 2021 to 50.9 points from 49.9 points in November. China consumes about half of this metal in the world.