FxWirePro: Copper hits target, further upside possible`

We at FxWirePro fundamental hasn't been much of a bull in copper, since we expect weakness in Chinese economy likely to weigh on Copper over the medium to long term. However, like we always mention that may not prevent a security to catch the counter trend in the near term.

Our previous call, http://www.econotimes.com/FxWirePro-Short-term-bullish-opportunity-in-copper-165538 , to buy copper @ 2.096/pound with target around $2.24/pound, has reached target and beyond.

Despite our longer term bearish outlook, due to China, we still believe, Copper might extend gains further, due to current risk favoring environment in global markets. A large section of investors and hedge funds are currently becoming interested in buying into industrial metals or at least covering some of their shorts.

Moreover, technically speaking, Copper has broken above a key resistance area around $2.15/pound.

Trade idea -

• We expect copper to extend gains after some correction, supported by current risk favoring sentiment, short covering and weaker Dollar.
   
• Buy Copper at correction around $2.19-2.15 area, targeting $2.45 area and stop loss around $2.07 area.
   
• 60% profit booking is recommended on previous call.