Copper - no bullish scenario short - medium term
Hi, thanks for viewing.
I am not presently able to trade Copper, but it remains of interest for a few reasons. One is that the majority of silver (56%+) is produced as a byproduct of copper, lead, and zinc mines, so reductions in the price of those industrial metals may point to a slowing of production of silver. I am not sure of the numbers for gold, but at least some of the world's gold is produced as a byproduct (Indonesia's largest gold mine produces gold (as a very valuable) byproduct to copper extraction. Copper, Lead, and Zinc are all in long-term down-trends.
A side note: The mine mentioned above has successfully hedged the copper price at $3/lb (for at least 2 years I believe) so until that ceases being the case there is unlikely to be a drop-off in copper / gold production from that mine). Also, most primary silver producing mines in the US are now producing silver at a loss.
There is no reason - that I can see based on TA to expect a strong bounce. Fundamentally, global demand is slowing, as well as manufacturing output - so fundamental analysis won't be of any comfort either.
Orange boxes just denote small areas of overlapping price action. The blue box is my short close / medium-term buy zone (no upside targets as yet - if price does not go below $1.98).
I am not presently able to trade Copper, but it remains of interest for a few reasons. One is that the majority of silver (56%+) is produced as a byproduct of copper, lead, and zinc mines, so reductions in the price of those industrial metals may point to a slowing of production of silver. I am not sure of the numbers for gold, but at least some of the world's gold is produced as a byproduct (Indonesia's largest gold mine produces gold (as a very valuable) byproduct to copper extraction. Copper, Lead, and Zinc are all in long-term down-trends.
A side note: The mine mentioned above has successfully hedged the copper price at $3/lb (for at least 2 years I believe) so until that ceases being the case there is unlikely to be a drop-off in copper / gold production from that mine). Also, most primary silver producing mines in the US are now producing silver at a loss.
There is no reason - that I can see based on TA to expect a strong bounce. Fundamentally, global demand is slowing, as well as manufacturing output - so fundamental analysis won't be of any comfort either.
Orange boxes just denote small areas of overlapping price action. The blue box is my short close / medium-term buy zone (no upside targets as yet - if price does not go below $1.98).