Copper Bull Bull Bull

[TWI]

I have built a long in copper over the past few months. I believe it will exceed $5/lb in the coming year. The fundamentals of global electrification which requires huge quantities of copper combined with the long term ESG driven reluctance to fund new mining operations for its extraction lead to an increasingly under supplied market . The only thing holding the price down has been the apparent sluggishness of the Chinese economy which was not expected and the perception that the west may be heading for a hard landing. Both of these will remain flags to the upside price for now but on balance they do appear to be resolving to the positive side and we have seen Chinese demand pick up recently. Interested to hear if anybody out there is bearish. Today was a good day for bulls but I am far far more of a pig in this one.

 

[timsk]

Hi TWI,
The precious metals community focus - wait for it - on precious metals, mainly silver and gold. However, lately, some of them are starting to 'stack' copper in the belief that its future is rosy and that one day it may even be classed as a precious metal. IMO, it's well worth tracking the relationship between silver and copper, as many think (me included) that the former is seriously undervalued, due in part to market manipulation. As you probably know, the silver market was cornered by the Hunt Brothers in the late 70s in a move known as Silver Thursday, which lead to the all time high in price. If it breaks out of its long term range, many believe it'll go 'to da moon'. If that happens, copper could follow in its slipstream - a rising tide floats all boats etc. Keep in mind though that copper is just as prone to market manipulation as silver is, see this link about Mr. Copper.

Your chart looks good and your analysis strikes me as being sound - good luck with the trade! Below is my range bar chart which suggests price is nearing a resistance level - so expect a short term pullback. Thereafter, like you, I'm bullish.
Tim.

 

[TWI]

Think you nailed the pull back. Taken all yesterdays gains back already. I have this as a long term position and will be accumulating more on dips. I note CaterpillarInc CEO today was not talking bullish on Chinese construction projects...does not help.