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beigledog

12/06/17 3:04 PM

#42184 RE: researcher59 #42183

Copper prices (putting my technician's hat on right now)...

Yesterday was a big deal (the worst day for copper prices in 3 years - Down 4.5%). It broke through support at $3.03 and now the chart looks weak in the near term. I think we could probably see something around $2.82-$2.87 in the near term as copper prices retreat back near the 200 day MA.

I've heard that yesterday's move was driven by stop loss orders, an increase in copper inventories and some concerns on China. Overall, the longer-term chart looks good. I've always thought that copper was a 2H17 story (as in, the best time to buy copper stocks on a risk-adjusted basis). The copper market should run deficits in 2018-2019 as there simply is not enough supply coming online to meet demand. I don't believe that we've seen the highs for copper prices (commodity cycles down last for only 6 months), and I would expect that copper prices average >$3 in 2018 (vs. $2.64 through the first 9 months of 2017).