Copper weekly special report based On 1.00 Lot Calculation:
COPPER
- COPPER USE: Copper is used in electronics as part of the auto industry, embracing 39% of the total market use. In the new ear, copper is used throughout electric vehicles, charging stations and supporting infrastructure because of the metal’s durability, high conductivity and efficiency. Construction (wiring, plumbing, weatherproofing) takes up to 32% of the total use. Transportation equipment accounts for 11% while Consumer and General products account for 10% of the total use.
- LARGEST PRODUCERS: Chile 27%, Peru 10%, China 8%, Congo 8%, USA 6%, while Russia is responsible for 4% of the global copper production.
- LARGEST IMPORTERS: China is the largest copper importer, controlling a little over 30%. Also, China is the largest consumer of refined copper, being responsible for little over 50% of the market.
- COPPER MARKET IN 2023: LOOMING SUPPLY SHORTAGE: Goldman Sachs predicts a 178,000 metric ton deficit in the copper market in 2023.
EVENTS AND FURTHER ANALYSIS:
- CHINA REOPENING: As one large copper consumer and an economy that had been under COVID restrictions for a long time, China is now expected to fully reopen in early 2023. Its economy is expected to start picking up strength in early 2023. The demand recovery in the property sector will propel the demand for industrial metals. For instance, China’s southern manufacturing hub of Guangzhou plans 1,722 projects in 2023 worth more than 6.5 trillion yuan ($945 billion).
- RECESSION FEARS RECEDE: GOLDMAN SACHS DOES NOT SEE RECESSION IN EUROPE ANYMORE. Economists at Goldman Sachs say they now anticipate a growth rate of 0.6% for the euro area in 2023. Previously, they had predicted an economic contraction of 0.1% for the region.
ANALYST OPINION:
- GOLDMAN SACHS forecasts $5.5 per one pound.
- BANK OF AMERICA forecasts $5.08 per one pound.
PRICE ACTION
COPPER HAS HAD A DOWNWARD CORRECTION OF AROUND 38% FROM ITS ALL- TIME HIGH OF $5.036 (February, 2022). The copper had fallen to its lowest rate since November 2020 to $3.1285 (July, 2022). Copper was last trading around $4.100, and If a full recovery follows recent all- time highs, the stock could see an upside of around 23%.
Copper, January 11, 2023
Current Price: 4.1000
|
Copper |
Weekly |
|
Trend direction |
|
|
5.5000 |
|
|
5.0360 |
|
|
4.4000 |
|
|
3.9000 |
|
|
3.7000 |
|
|
3.5000 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Copper |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
14,000 |
9,360 |
3,000 |
-2,000 |
-4,000 |
-6,000 |
|
Profit or loss in €2 |
13,029 |
8,711 |
2,792 |
-1,861 |
-3,723 |
-5,584 |
|
Profit or loss in £2 |
11,526 |
7,706 |
2,470 |
-1,647 |
-3,293 |
-4,940 |
|
Profit or loss in C$2 |
18,778 |
12,554 |
4,024 |
-2,683 |
-5,365 |
-8,048 |
1. 1.00 lot is equivalent of 10,000 units
2. Calculations for exchange rate used as of 09:00 (GMT) 11/01/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more detail