Copper rose to its highest value in four years, after China stopped its largest producer production, to combat winter pollution. Measures taken from China led to an 11% increase over the last few sessions and a breakthrough on a key level of resistance that gives us a good levels to get positioning position with long positions.
In 2017, the precious industrial metal rose to 27%, the main driver being the slow delivery and the very positive prospects for global growth. The largest share of copper use in 2017. is the production of electric motors for electric vehicles.
According to Codelco largest producer, copper prices will reach $ 10,000 in 2018, and according to UBS Group, this level will not be an obstacle and we will see extra profits.
Where is Copper now and where to position yourself best with the strong foundation.
The price is currently breaking into a highly horizontal level of resistance, which more aggressive traders will use to enter Long with a short stop below the minimum of the last three bars. The good deal here will be after a correction to the first level of horizontal support, at $6945 per ton with SL: $6840. The CCI indicators that best show the moods of the Commodity market are in the over-bought zone and do not signal Long. More conservative traders will wait for a deeper adjustment to long-term diagonal support, where we will also join with long positions.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Bloomberg: Copper Rallies to Three-Year High as China Plant Halts Output
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