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: 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.
- 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.
- 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.
The world’s top copper producer Chile saw output of the red metal fall for the tenth consecutive month in March. Copper output fell 1.3% in March, to 491,720 tonnes, the agency said, coinciding with a raft of new restrictions on movement and commerce. Chile’s copper production fell 2.2% year on year, to 1.4 million tonnes, in the first quarter of 2021. - HIGHER INFLATION TO KEEP PUSHING COPPER PRICES UP: The copper price has risen more than 30% 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 (April exp. 3.6%), which may positively support Copper prices.
Copper, May 10, 2021
Current Price: 4.8100
|
Copper |
Weekly |
|
Trend direction |
|
|
5.5000 |
|
|
5.2500 |
|
|
5.0000 |
|
|
4.6300 |
|
|
4.5000 |
|
|
4.4000 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
COPPER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
6,900.00 |
4,400.00 |
1,900.00 |
-1,800.00 |
-3,100.00 |
-4,100.00 |
|
Profit or loss in €** |
5,683.08 |
3,623.99 |
1,564.91 |
-1,482.54 |
-2,553.27 |
-3,376.90 |
|
Profit or loss in £** |
4,906.07 |
3,128.51 |
1,350.95 |
-1,279.85 |
-2,204.18 |
-2,915.20 |
|
Profit or loss in C$** |
8,353.00 |
5,326.55 |
2,300.10 |
-2,179.04 |
-3,752.80 |
-4,963.38 |
* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 9:00 a.m. (GMT+1) 10/05/2021
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