FxWirePro Call Review: Copper to remain bearish over longer horizon targeting $1.7 per pound

In early February, we warned our readers that copper could suffer a further decline as it declined steadily in five out of the six weeks since reaching $3.32 area in December. We warned that the next move downwards could come as a sharp selloff after the next bounce. Here is the link to the article, https://www.econotimes.com/FxWirePro-Copper-might-face-sharp-selloff-after-next-bounce-to-reach-278-per-pound-1140489

And in March, we called on our readers to go short on Copper and shared the recommended profit booking plans, at the then current rate of $3.177 per pound with stop loss around $3.32 per pound and target of $2.78 per pound and advised to book 50 percent profit at the interim target around $2.88 per pound. Here is the link, https://www.econotimes.com/FxWirePro-Call-Review-Sell-Copper-targeting-278-per-pound-1160929

Copper has reached our target and beyond and we believe that it would soon reach our extended target of $2.55 per pound, https://www.econotimes.com/FxWirePro-Call-Review-Copper-might-decline-to-as-low-as-255-per-pound-1225885

Since we suggested the $2.55 per pound target in late March, the trade tensions between the United States and China have intensified. Each has imposed 25 percent tariffs on $34 billion worth of imports and will impose on another $16 billion in days. And as promised, Trump has called on his aides to prepare for another $200 billion.

But when world’s biggest importer U.S. street fights with world’s biggest exporter and commodity glutton China, the commodities like Copper is likely to get given the fact that China accounts about 46 percent of global copper demand.

Hence, in this article, based on our calculations and models, we would like to upgrade our outlook for Copper from bearish to very bearish over the longer horizon with $1.75 per pound as the target price. But one must expect occasional bounce backs and increased volatility on both sides.