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Copper

Copper Heads for the Highs A late February peak runs out of steam and makes a comeback LME and COMEX stocks rise Inventories can be a mirage Goldman Sachs makes a bullish call- Three reasons for higher copper prices Heading for new high- Copper could go parabolic In March 2020, nearby COMEX copper futures traded to the lowest price since June 2016, when it reached a bottom at $2.0595 per pound. In February 2021, the price traded at a decade high at $4.3630 on the continuous contract. Copper fell during the height of the global pandemic’s impact on markets across all asset classes. The price moved from a four-year low to a ten-year high in a little less than one year. The trend in copper is higher, and we could be on the verge of a move to prices above the 2011 $4.6495 peak. Copper is a building block of infrastructure worldwide, but it is also a metal with many industrial applications. A late February peak runs out of steam and makes a comeback The trend of higher lows and higher highs in the copper futures market remained intact at the end of last week. After reached a continuous contract peak at $4.3630 in late February, the highest price in a decade, copper pulled back below the $4 level, reaching $3.8760 in early March. Since then, the price has been climbing and was back above the $4.33 level at the end of last week. Open interest, the total number of open long and short positions in the COMEX copper market moved from a low of under 162,000 contracts in May 2020 when copper’s price was under $2.40 per pound to the 247,572 level at the end of last week with May copper futures settling at $4.3360. Rising price and increasing open interest is a technical validation of a bullish trend in a futures market. Weekly price momentum and relative strength indicators were well above neutral readings and rising. Weekly historical volatility at 18.76% indicates the bullish trend is slow and steady. The metric reached a high of over 37% in May 2020. Copper backed off from the February decade-high peak, but the price came storming back and is now a stone’s throw away from an even higher high. The semiannual chart shows dating back to 1988 illustrates the all-time high came in 2011 at $4.6495, only 31.35 cents above the closing price on April 23. Heading for new high- Copper could go parabolic Copper was below the 2011 high on Friday, April 23. The LME price was under $10,000 per ton. Goldman Sachs’ forecast is for $11,000 per ton in the next twelve months. However, as “copper is the new oil,” the longer-term price expectations are far higher as they see demand rising much faster than supplies. Goldman sees copper at $14,000 per ton in 2024 and $15,000 per ton in 2025, over 50% higher than the current price approaching the 2011 high. Bear markets often take prices far below where logic dictates. If you have any doubt, look at an oil chart from April 20, 2020, when NYMEX futures fell to the negative $40.32 per barrel level during a tidal wave of selling. Bull markets have a habit of moving to levels that are far higher than analysts expect when a buying frenzy creates parabolic moves. Lumber was at $251.51 per 1,000 board feet in April 2020 and moved nearly five and one-half times higher at the recent $1374.70 level. Copper is not the only commodity rallying these days. Grain prices experienced explosive gains last week. Palladium, a thinly traded precious metal, rose to a new record high at $2928 per ounce last Friday. Copper has bullish winds behind its sails from a fundamental and technical perspective. The red metal looks set to climb to new heights as the copper bull market appears firmly intact. When markets trend, picking a top can be a tragic mistake. Sit back and enjoy the ride, even though it could become bumpy. The risk of corrections rises with prices in bull markets. Read the full article using the link below. Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading.
Editors' picks
COMEX:HG1!Long
by Andy_Hecht
16
Freeport Bouncing at the 50-day SMAFreeport McMoRan has steadily rallied since the March low. Now the copper miner may be ready to break out of its longest consolidation since the surge began. One big feature on the chart is the high basing pattern above $30. It’s recently made higher lows and tried to climb up the right side of that basin. Price has also held the rising 50-day simple moving average (SMA). It previously bounced along that line in September, January and March. Next, FCX has broken a downward-sloping trendline along the February and March highs. Last week it bounced at that line, which could mean that old resistance has become new support. Copper has been one of the biggest gainers since the pandemic as years of stagnant production growth collides with a global electric build out. The red metal has been a major green-energy asset. FCX is one of the most straightforward equities to play the trend. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:FCXLong
by TradeStation
2
COPPER (XCU/USD) – Week 16 – Important area ahead.Last week, Copper reached the resistance area and it looks undecided at the moment. In the coming days, based on the market structure, the next probable move is a bearish impulse that may push the price into the liquidity pool area, but for now, we don’t have a clear setup. Trade with care. Best regards, Financial Flagship Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
OANDA:XCUUSDShort
by financialflagship
13
COPPER (XCU/USD) – Week 17 – New top expected.Last week, the Copper price increased and broke the resistance, despite our analysis in which we anticipated the price will drop from that level. In the coming days, we anticipate that we will break the top and then go in a “stop hunt” phase that can push the price down towards the support area. Trade with care. Best regards, Financial Flagship Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
OANDA:XCUUSDShort
by financialflagship
14
FCX on commodities/copper risingFCX is currently sitting above a support area so we wouldn't call this the absolutely best trade. That said, maybe a 2% max trade risk on it hitting the Stop-loss while keeping in mind that other ideas are available and better. However, if it does make a strong move off support, moving the TP higher and SL to breakeven will turn an ok trade into a great Reward/Risk trade. This is also a good re-entry or a place to add to a buy and hold position for those of you that jumped on during the previous published idea.
NYSE:FCXLong
by Flightschool
2
Descending Channel for QC Copper & Gold?It appears as though QCCU is trading in a descending channel, if the bottom support is lost then be very cautious. On the KST there's been a bearish cross where I have placed the red downward pointing finger. The DMI is showing a bearish cross where the red line has crossed over the blue in an upward motion, I have placed red finger icons as some other similar previous examples. Keep an eye on the DMI because it's possible the blue line crosses over the red and orange in an upward motion this week if there's going to be a bullish reaction off of the bottom of the descending channel pattern. The dark red line on the chart represents the baseline of potentially a descending triangle or bullish flag formation, when viewing from a longer-term time perspective than a 6-month chart it becomes more apparent. This chart is done on a log scale, I will link another chart done differently. If this was a descending triangle or potentially a bullish flag the baseline of support has been lost.
TSXV:QCCU
by ScotianBot
COPPER Buy SignalPattern: Fibonacci Channel on 1D. Signal: Buy as the price rebounded on the 1D MA50. Target: The 1.5 Fibonacci extension level (low-risk) or the 2.0 Fibonacci level (high-risk). Previous COPPER signal: ** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. ** -------------------------------------------------------------------------------------------------------- !! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !! 🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> kylevd23 --------------------------------------------------------------------------------------------------------
COMEX:HG1!Long
by TradingShot
2
DEX Ascending Triangle.Duke Exploartion Limited (ASX:DEX) is an exploration company focusing on Copper, Gold and Silver discoveries in Queensland and New South Wales AUS. Duke's 100% owned flagship project is the Bundarra tenement EPM 26499. A fully funded exploration work program aims to drill out a maiden resource by mid-2021 at the Mt Flora prospect within the larger Bundarra tenement. There are 2 TA scenarios currently IMO Bullish: - Ascending Triangle forming against daily Resistance. - MACD Bullish cross anticipated - RSI above 50.00 and broken short term downtrend - Fundamental news due within 2 months - Broken 20 MA Bullish - Targets for Ascending Triangle completion are levels of Former Resistance which also are very close to Trend Based Fib Extension Levels. Bearish: If we fail the Ascending Triangle price will retest Uptrend and Break, then we should see MACD Bearish aswell as RSI below the 50.00 trending Bearish. Most likely we will see a retest of Former Support @.30 "DISCLAIMER: NO ADVICE. The information presented here is general in nature and is for education purposes only. Nothing should be considered to be advice. You should consult with an appropriate professional for specific advice tailored to your situation."
DLong
by Trader_Johnni
COPPER (XCU/USD) – Week 15 – Expecting the price to drop.Last week, Copper continued to lack volatility and moved sideways the whole week. In the coming days, we expect the price to start falling and finish this complex correction, reaching the liquidity pool area that we highlighted on the chart. Trade with care. Best regards, Financial Flagship Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
OANDA:XCUUSDShort
by financialflagship
22