As a basic observation in The Monthly chart of copper Futures (HG1) . Copper reached during the last year it's highest levels since 2011 breaking its all time high . As a result of the high demand from china in 2020 and the lower production from the miners in Chile and Peru . In the other hand the Chart has shown selling configuration .There's a high probability that the prices might visit the 4.7 level before it starts dropping down and visit some of the lowest levels passing by $3.5 - $3 as first target in the next few month and if the price breaks down this level then the target will be $2.5 , and there is a lot of fundamental reasons .
-Lately the Li Keqiang Index has dropped down as sign of china's Industrial situation . and as known the high correlation between Copper and the Li Keqiang and it lower the demand on copper in 2022 . -Chile started rising its production rate so this will affect the supply in the market . -The US federal Bank has been declared that they will rise The Interest rate by the end of March and it will affect all industrial and technological sectors.
how about inflation? Will inflation makes the dollar weak and copper more valuable? what about Biden's 1.9 trillions infrastructure plan? Green renewable energy from US and China will needs a lot of copper in the process.
ossamaouadih
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@fb2a1004, The federal bank will rise the interest rate by 25% in march . This will effect Manufacturing industries in china by reducing the investments . Li keqiang gives a great indication about what happening in china now and it will affect commodities in the next months . The USIRYY rates are in the highest levels since 1982
@fb2a1004, And for the 1.9 trillions infrastructure plan it already took hands cause they were accumulating Copper Aluminium and so many metals Since april 2020
Seeyou134
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@ossamaouadih, What do you see as a good reentry point into copper over the next few months?
ossamaouadih
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@Seeyou134, For a big portfolio , you can start accumulating between $3 and 2.5 . I'm gonna put an update when it's time to buy stay tuned