CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Copper

Market Opportunities - 29/04/2021

29 April, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Copper weekly uptrend opportunity based On 1.00 Lot Calculation:

  • Copper is an industrial metal commonly used in construction for plumbing and electrical wiring. As major world economies continued to recover from the pandemic, China and the USA in particular, demand for copper looked high again.
  • HIGH DEMAND: US INFRASTRUCTURE BILL WORTH 2.3 TRILLION DOLLARS: President Joe Biden outlined a huge $2.3 trillion plan on March 31 to reengineer the nation’s infrastructure. The Biden administration is willing to build roads, railroads and bridges across the US, and copper will be one of the most used raw material in this process.
  • HIGH DEMAND: CHINA IS THE WORLD’S LARGEST IMPORTER OF COPPER: China could be expected to import more than 12 million tons of copper in 2021 as their economy continued to recover. The Chinese economy grew by 18.3% in the first quarter of 2021, the highest on record.
  • LIMITED SUPPLY: CHILE IS THE LARGEST PRODUCER OF COPPER, A COUNTRY WHICH HAS BEEN HARD HIT BY THE COVID PANDEMIC: In 2020, China produced 5.7 million tons of copper, while the second in line, Peru, produced 2.2 million tones. Due to the COVID- 19 pandemic, however, Chile’s copper supply saw declines in the first quarter of 2021, as Chilean miner Antofagasta said that copper production in the first quarter of 2021 fell 5.7% to 183,000 tons from the same period a year ago.
  • COPPER MARKET DEFFICIT: According to S&P Global, the global refined copper market will be in deficit by 5,000 tons in 2020, increasing to more than 200,000 tons in 2024.
  • HIGHER INFLATION TO KEEP PUSHING COPPER PRICES UP: The copper price has risen around 27% since the beginning of the year, to hit its highest rate since 2011 as inflation fears kept growing, supported by big monetary and fiscal stimulus packages. Historically, Copper prices are positively correlated to inflation. The headline inflation in the US rose to 2.6% in March, and could be expected to continue to rise in the coming period, which may positively support Copper prices.

Copper, April 29, 2021
Current Price: 4.5100

Copper

Weekly

Trend direction

UP

Resistance 3

5.0000

Resistance 2

4.8500

Resistance 1

4.7000

Support 1

4.3300

Support 2

4.2000

Support 3

4.1000

Example of calculation base on weekly trend direction for 1.00 Lot*

COPPER

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

4,900.00

3,400.00

1,900.00

-1,800.00

-3,100.00

-4,100.00

Profit or loss in €**

4,044.14

2,806.14

1,568.14

-1,485.60

-2,558.54

-3,383.87

Profit or loss in £**

3,508.32

2,434.34

1,360.37

-1,288.77

-2,219.55

-2,935.53

Profit or loss in C$**

6,024.01

4,179.93

2,335.84

-2,212.90

-3,811.11

-5,040.50

* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 8:51 a.m. (GMT+1) 29/04/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details

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  • CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how leveraged contracts work and whether you can afford to take the high risk of losing your money.