Expert Outlook
Amid the global surge towards cleaner energy alternatives gaining pace, economist and commodities expert, Patricia Mohr, foresees a resurgence in demand for essential metals. Speaking at the recent Prospectors And Developers Association of Canada (PDAC) conference, Mohr expressed bright prospects for copper and uranium.
Bullish Projections
Mohr’s optimism towards copper stems from its crucial role in electricity generation, especially in the renewables sector. She anticipates a significant surge in copper prices due to this pivotal role. Additionally, Mohr’s bullish sentiment extends to uranium, foreseeing a potential increase in demand for this metal.
Market Strategy
In response to Mohr’s projections, investors eyeing the base metals sector may consider the AiLA Long-Short Base Metals Strategy ETF from Teucrium. This ETF focuses on vital commodities and implements a market-neutral strategy for a positive return regardless of market direction. The AiLA-S022 index, which the ETF follows, demonstrated an impressive annualized return of 12.65% from 2017 to 2023.
Technical Analysis
From a technical analysis standpoint, copper appears poised for an upward trajectory in the medium-to-long term. The commodity is currently trading within a descending channel pattern on the daily chart, indicating potential bullish momentum ahead.
- Thursday saw copper forming a long-legged doji candlestick on the daily chart, suggesting a battle between bulls and bears. This could signal a potential retracement or a shift in trend.
- While descending channel patterns are typically bearish in the short term, a breakout from this pattern with increased volume could indicate a bullish reversal in the longer run.
- Key resistance levels for copper lie at $4.13 and $4.23, with support levels at $4.02 and $3.91, indicating potential price movements.
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