Update for Copiers
I think the $COPPER chart is starting to look interesting. The extended shutdown in China of factories and businesses had a sharp impact at end of January but it started to bounce quickly when markets got ahead of themselves and thought everything was going to return to normal.
Now we are seeing bit of a reality check as the impacts on industry start to weigh but it’s very unclear how it’s going to develop from here. I just saw a story that car sales in China dropped 92% in January and also one that a Hynix factory in S.Korea where 800 workers have quarantined themselves after a worker was found to have the virus.
The 52-week low on Copper is $2.48 and that area of support held at the end of January when a test of it got close. What I’m most interested in though is the area around $2.30 and if things do get worse on a global scale with slowdown in economic activity there is a chance it head for that area.
Expected Copper demand might be too strong for price to make it that far so some flexibility is likely on this kind of target price but it at least gives some structure for analysing the situation.
If it does, and depending and what other assets are up to at the time, I will start investing in Copper equities. I still have a core position in $FCX at the moment but have already sold out of previous holdings in $KAZ.L during previous rallies.
$KAZ.L around 410p will see me very interested in accumulating again and I’ll also we watching $ANTO.L at the same time.
A short while ago eToro did add $SCCO (Southern Copper) but they have taken it away so that’s not a option to explore at the moment but I did discover $NDA.DE which looks like an exciting prospect and if Copper does pullback meaningfully it could setup and very nice entry. I will likely also invest in this one on my @InvestusMaximus account as it looks like a good value stock, pays a fair dividend and I like the recycling angle.
“Aurubis produces high-purity, high-quality copper from copper concentrates and recycling materials and processes it into intermediate products. Copper scrap and a variety of other recycling materials are reintroduced to the economic cycle this way.
We produce more than 1 million t of marketable copper cathodes each year. They are processed in the Group into continuous cast rod, specialty wire, shapes, rolled products, strip and profiles made of copper and copper alloys. In addition, we produce precious metals such as gold and silver and a range of other products, for example sulfuric acid and iron silicate, as by-products of copper production.”
I wanted to mention this in case you notice me taking new equity positions and wonder what I’m up to.
Thanks for your time.
