Source: Forex News
Copper is one of the most important metals in the world. It’s relatively low price coupled with its conductivity properties make it ideal for all electrical work. In the past one year, its price has significantly moved up following the uptake of electric cars. In December, its price reached a multi-year high of $3.32 per pound.
This year however, copper has plateaued between $3 and $3.3.
Copper’s price tends to move slightly in sync with the global economy. As the economy advances, so does the demand for products made from copper.
In the past few days, the talk among investors has been about the proposed tariffs by the United States. These tariffs on steel and aluminum, if implemented may lead to a trade war, which could affect the demand for cars and other products.
Therefore, copper could see a short period of uncertainty as traders try to find the best path for least resistance. In the meantime, traders should watch out for a short correction which could see copper trade at or below the $2.95 level.
The post Copper Technical Analysis: The Price may Fall Below $3 appeared first on Forex.Info.