FxWirePro call review: Our bull call in copper under threat

Back in February, when the price of copper was rocketing higher and broke above a crucial support around $2.72 area, we called on our readers in an article named “FxWirePro: Buy Copper targeting $3.2 per pound” available at http://econotimes.com/ , to go long in the copper at the then current price of $2.79 per pound with a target of $3.2 per pound. After a spectacular commodity rally in 2016 and the US President Trump’s pledge to increase infrastructure spending, it was conceivable that the price could rise to levels such as that.

However, in the following months, it became clear that the President’ Trump’s promised infrastructure spending approval could take a much longer time than originally anticipated. In addition to that, rising cost of borrowing in China is leading to major selloffs in the commodity segment. Our call has not yet hit our recommended large stop loss around $2.43 per pound; we suspect that the level might get breached over the coming months. As of now, copper is testing support around $2.5 psychological area, however, if it fails to find support and move above $2.7 per pound, a bearish scenario would be increasingly likely that could push down the price to as low as $2.06 per pound.