Commodity Trade Mantra

All posts under ‘Copper Trading’

Copper Price Movements - A Source of Good Cheer for Silver Bugs

A source of good cheer for silver bugs is the copper chart. Copper tends to lead the metals and its recent breakout from a Head-and-Shoulders bottom on strong volume certainly augurs well for gold and especially silver, which is also an industrial metal. Silver has the dual virtue and being both a precious metal and a vital industrial metal. Just watch what happens around soon enough.

Copper, Zinc & Nickel Prices Leap - Base Metals Rally as Bulls Hungry for More

Copper is looking strong, apparently due in part to China stockpiling it. Right now it is overbought and has resistance to work its way through, so periods of consolidation are to be expected. Base metals have been lifted by sustained demand growth and restrained supply. Of all the base metals, zinc exhibits the most bullish fundamentals, with LME inventories that are running near empty.

Base Metals Breakout, Reversing Their Decade-Long Downtrend

Last week was one of those weeks as we witnessed a whole host of commodities either breaking out of multi-month consolidation patterns, or seriously threatening to do so. The topside moves were spread across the commodity complex, but the most significant moves were seen in the base metals where we witnessed breakouts across the board, some in rather spectacular fashion.

Copper Breakout has Profound Implications for Precious & Base Metals

Over the past couple of days copper has broken strongly higher & the implications of this development are profound for the base and Precious Metals sectors. This is a sign that a major bull market is about to begin across the entire metals sector, which as you know is what we are looking for in gold and silver. Silver in particular is gruesomely undervalued & has huge upside potential from here.

Copper - True Economy Indicator & a Better Inflation Hedge than Gold

When it comes to inflation, which can erode the value of portfolios that don’t keep pace with rising consumer prices, anyone who bought gold as a hedge over the past 25 years missed out on a much better deal — copper. While data show that broad commodity indexes provided the best bang for the buck during periods of rising costs in the US, Copper – “the metal with a Ph.D. in economics” stands out.

Copper Flashing the Hottest Chart on the Market Right Now

Copper has endured a painful downtrend for six years. Copper has exploded out of its long-term downtrend after building a solid base last year. It’s time to get ready for some huge gains. We saw the rumblings of a potential breakout back in October. Fast forward to this year & copper is ditching its downtrend for gains. Hop on the next leg of the base metals rally while you can.

Citi and Goldman are Highly Bullish on Copper

With workers at the world’s largest mine, Escondida, set to begin a strike, and with a new Grasberg export permit yet to be granted after the prior permit expired almost a month ago (January 11), downside risks to supply appear increasingly likely to materialise and translate into copper production losses. With exchange copper stocks already very low, physical tightness could lead to price spikes.

Is This The Final Week For The World's Largest Copper Mine?

The standoff between workers and owners of the world’s largest copper mine: BHP Billiton’s Escondida operation in Chile, came to a head last Friday. A resolution seems unlikely, given how far apart workers & management appear to be on labor demands – we could see Escondida shut down completely, very soon. That would almost certainly give a lift to copper prices.

Metals Zoom On Projected Massive Infrastructure Spending - How Long Before Silver Takes-Off?

Metals are surging due to projected industrial expansion. To argue that a massive infrastructure spending program will be beneficial for lead, zinc & copper prices, but immaterial for silver prices, is as ridiculous as claiming that overvalued stock prices can continue to surge amidst the “gigantic pink elephant” that is surging global interest rates and plunging worldwide currencies.

Are Copper Prices and China Set to Rally?

In marked contrast to gold, copper looks to be set up for a sizable rally here. On its 1-year chart we can see that after its significant drop, it is down on an important support level that is certainly capable of generating a rally, despite its still bearishly aligned moving averages. Chances of copper rallying soon are greatly magnified by its latest COTs, which show that Commercials are now heavily long.

Upcoming Labor Negotiations Might Boost Platinum, Copper Prices

The world’s #1 producing nations for platinum and copper are facing a common problem this week. And latest developments suggest this issue could be a potentially explosive one. The challenge is labor negotiations in the mining sector. Watch for the reaction of the unions to these offers, and for any signs of brewing unrest that could impact production in both of these critical countries.

Big Trouble Ahead For Copper Is Good For Silver Prices

What kind of surpluses will the world experience when the copper finance trades go south on top of slowing global industrial demand? Why is this good for silver? As global base metal supply, especially copper, starts to decline, it will drastically impact global silver mine supply. Around 55% of world silver mine supply comes from copper, zinc and lead production.

For Copper Prices - It's Been a Bad Few Years

Copper prices have been falling for five years. By last year the situation had deteriorated enough to prompt a slew mine cutbacks, totaling several hundred thousand tonnes & the market is now expected to fall into deficit in this year. Copper prices have fallen so far that little downside remains. Positioning in the best copper equities today will pay off down the road.

Copper Price Forecast 2016: Producers Under Pressure

With copper at $2, roughly 20 percent of the world’s production is not economic on a C1-cash-cost basis. Producers have been able to hang on thus far, but if low prices persist, there could be further production curtailments and mine shutdowns down the road. Hopefully that will be a catalyst that will help prices move higher.

Copper Prices Decline To Levels Below Cost of Production

There are various estimates for what the Marginal Cost of getting Copper out of the ground is before supply is taken offline completely. But it is reasonable to assume that Copper is currently being priced well below the long term Production Cost of Processing the Industrial Metal. The $2 Copper could well be setting up for an ample short covering rally before 2015 ends.

Copper Hits Fresh Lows Not Seen Since March 2009

China is facing an unprecedented drop in refined copper imports as a slowing economy erodes demand. Concerns metals demand is ebbing deepened as Codelco, the biggest copper producer, cut its surcharge for sales to China by 26 percent next year. The reduction highlighted waning consumption in the Asian country.

Guess Which Metal’s Rallying Right Now…It's COPPER

Digging through the commodity market wreckage has been a grisly task these days. Busted charts everywhere, a wasteland of multi-year lows and broken trades. But after a six-year drubbing, copper is rising from the dead. That’s right – Dr. Copper’s springing back to life. And the best part? No one’s paying attention yet.

Copper Breaches $5000, Breaks Below 15-Year Trendline

The plunge in copper means almost one in five mines globally is losing money. Some mines will have to cut supply or close if prices stay so low. While disruptions in mining have reduced supply, it’s not been enough to support prices. Copper producers are likely to miss production targets by up to one million tons this year. This should provide a cushion for copper prices.

Are Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next?

In case you haven’t figured it out by now, the global financial system is in real trouble. Yields on the riskiest junk bonds are absolutely soaring and the price of copper just hit a fresh six year low. If you understand history, and you are aware of the patterns that immediately preceded previous stock market crashes, then you know how how huge both of those signs are.

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