Yesterday China officials reported that their economy grew slightly faster than expected in the three months to March. The economy expanded at 6.4% in the first quarter from a year earlier vs. the forecast of 6.3%. In additional, factory output jumped 8.5% in March.
China is taking a “by any means necessary” approach to boost its slowing economy, but don’t call this a comeback yet. I mean it was only one quarter, for that matter the whole world has been on fire to start the year. Nevertheless, the news was enough to send the copper prices to a 10 month high before price pulled back.
I talked about Copper one month ago,
Price is wedged between buyers and sellers and in the middle of what’s about to be war. I honestly have no clue where price is headed next, but I will be following the US dollar for clues as the US dollar and copper are inversely correlated.
Despite breaching the demand zone at 2.0900, prices are still wedged between two key zones.
One reason is because the US dollar is still range bound,
But the other reason is prices are waiting to see if a US-China deal will be reached. Thus, the only way to play copper at the moment is to play the extremes and consider anything in the middle as equilibrium.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.