Despite the setback in copper prices recently seen, institutional analysts at the S&P Global Platts platform have indicated. According to their projections, copper price is expected to rise in 2021 on supply shortages and a bullish demand outlook. Bank of America analysts are projecting a copper price of $4.54/pound for 2021, while metal strategists at ABN AMRO predict a slower rise in 2021.
A rebound in the global economy and robust demand from China is expected to combine with enhanced vaccine rollouts to support the red metal down the road.
Copper price had on Friday, slid slightly as the rise of US Treasury yields on the 10-year note pushed back prices of non-yielding commodities and strengthened the US Dollar.
Technical Levels to Watch
Copper price continues to trade within the confines of the symmetrical triangle on the 4-hour chart. The overriding sentiment is for copper price to continue in the direction of the predominant trend, which would allow copper prices to touch off 4.2015 initially, with 4.2755 and 4.3995 lining up as additional targets along the way. A price projection of 4.5260 may also be on the cards.
On the other hand, a decline below the triangle converts this pattern into a topping pattern, leading to a retracement move that targets 3.9970 initially, with 3.9535 and 3.8340 serving as additional targets to the south.
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Copper Price; Daily Chart
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