I wanted to say a few words about the price of copper. At the moment, everyone is outdoing each other again with particularly intelligent forecasts.
From a purely technical point of view, we are consolidating an overstatement and a short squeezing that took place in the 4.70 to 5.20 range. No surprise. Exponential movements always break at some point (like a wave).
Around 4.50 is the short and steep uptrend that started in February (purple line). I see stronger or more important support here in the next 2 weeks.
Light blue around 4.35 would be the next support for the coming weeks.
Dark green - around 4.00 - is the longer-term uptrend - I don't think we will correct that far.
The attentive reader may have seen that Glencore, for example, is investing 50% of its total planned capex for the next 3 years in copper production. There is probably a reason for this.
Then in June we have the Fed's interest rate decision, which could give the metals some tailwind again.
I therefore think that the zone around 4.40-4.50 will hold over the next few weeks and that a decision on a further upward breakout will be made in the next 3-4 months. Rome was not built in a day - but the trend is “irreversible” in my view.
DYOR
PS. regarding HMX: Yes, I am holding and gritting my teeth. I'd be surprised to see any “planned” results this week. If so, it would have to be a trading halt because they found sulphides in Hardway, for example. They've probably been drilling there since the end of last week / beginning of this week. But maybe the team hasn't found anything.....and that's why the SP....is falling because “some people know”. Pure speculation on my part.....
