Sentiment surrounding global growth has been poor in the last few weeks with growing risks. Geopolitical tensions between US and China, higher rate expectations, angst about overstretched US equity positions, slower Chinese data, and lower US earnings expectations have all meant investors have been negative on the prospects of global growth.
This has been keeping Dr. Copper pressured. However, the pivot towards green energy is set to keep copper demand up, according to analysts from Citi and ING. So, does the technical setup for Copper mean this is a logical place for buyers?
Seasonally, copper tends towards gains at this time of the year. Between July 4 and July 31, Copper gained 66% of the time for an average return of 1.95%. Does this mean copper could gain through July?
Major Trade Risks: The main risk here would be if the global growth worries grow and any or all of the risks to global growth identified above worsen.
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