No, I don’t think we are there yet, I don’t think there is a recession imminent just yet as some are suggesting. On the contrary, there are some great things happening right now, some trends are just starting. For instance, electric vehicles sector is just about to take off and bullish oil could just speed up the whole process.
And as you may know, copper is a key element of every electric component because it’s a great conductor. If we assume that a recession is not imminent and among other electrification EV sector is just starting to take off then it is fair to say that demand for copper should pick up too, right?
We’ve been seeing a crazy rally in the base or industrial metals, including copper, this year. So should we expect prices to fall or correct despite the assumptions above or not? Let us take a look at copper weekly chart.
While the price stays above $3 I think there is no reason to be bearish, I think we should be buying weakness where the path of least resistance is towards retesting all time highs or maybe even higher in the months to come.
What do you guys think?