Unveiling the Potential of Copper

Unveiling the Potential of Copper

Recent news surrounding copper indicates a mix of challenges and opportunities in the market. Copper prices are influenced by various factors like supply, demand, and global economic conditions. The outlook for copper in 2024 remains neutral due to oversupply projections for other base metals, while copper itself faces a refined market supply-demand deficit. The industry is closely watching China’s demand, which accounts for over 50% of global consumption, and the impact of macroeconomic factors like interest rate hikes by the US Federal Reserve.

In terms of recent developments, the US Department of Energy allocated significant federal investment to base metals projects, aiming to reduce carbon dioxide emissions. Additionally, Century Aluminum secured funding for a new aluminium smelter, reflecting a push towards sustainable practices. The market has seen a decline in spot copper concentrates treatment and refining charges, raising questions about the reasons behind this trend.

Moreover, the long-term outlook for copper is moderately bullish, driven by ongoing mining supply issues in key regions like Chile and Peru. The rise of clean energy technologies and electric vehicles is expected to boost copper demand, aligning with the global shift towards a low-carbon economy.

Overall, the copper market is navigating through a complex landscape of economic uncertainties, supply challenges, and evolving demand patterns. Stakeholders are closely monitoring developments in China, global economic recovery efforts, and policy measures that could impact the base metals industry. As the world transitions towards cleaner energy sources and sustainable practices, copper’s role in supporting this shift remains crucial, making it a key metal to watch in the coming months.

A Technical Analysis Perspective

In the realm of commodities trading, copper, often known simply as (HG1) has been very interesting lately based on its price dynamics. One particular pattern that has grabbed the attention of traders and analysts is the inverse head and shoulder pattern. In this technical analysis review, you will study copper in terms of recent breakout, potential for future prices and major indicators behind it.

Inverse Head and Shoulders Breakout:

The weekly chart in Copper recently reveals a significant inverse head and shoulders pattern breakout with the neckline broken at $3.97. This breakout marked a major turning point indicating possible changes in trend direction. Copper rallied to levels around $4.15-$4.16 upon breaking out; demonstrating how strong bullish momentum can get.

Throwback and Expected Rally

After reaching the peak, there was a throwback by copper to the neckline situated at $3.97 Nevertheless, this retracement is seen as a healthy pullback within the context of an existing breakout With regards to this throwback, there is hope for renewed rally next week Traders are expected to bid up copper towards around $4.38-$4.40 region due to positive feel about it.

Trade Recommendation:

Based on technical analysis and patterns seen it could be suggested for traders to think about entering into Long position in copper (HG1) at current market price (CMP) which is $4.07. The stop loss should be put at $3.80 dollars making it easier to handle risk hence effectively doing so. As for the target price, aiming for $4.40 aligns with a favorable risk-reward ratio of 1:2, offering an attractive opportunity for potential gains.

MCX Copper: There is a Inverted Head and shoulder pattern has been formed. It has also break the resistance level of 769. Copper is ready for a bull trend again. Buy Copper around 768, Stop loss will be below 720. Target 816—860 and then to 1050. (CMP)768.

Commodity Samachar
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