Commodities: Copper
The $US index dipped back under 90 overnight putting a spring back into the commodities space e.g. copper rallied over 3%. At this stage we see ongoing rotation by copper around the 450 and 500 area as the greenback continues to look for a major swing low.
Copper has reversed aggressively over the last fortnight falling 8% in just a few sessions, we all know commodities are in short supply as central banks and governments unleash unprecedented levels of economic stimulus but copper has already more than doubled in price making us start to question how much of the post COVID recovery trade is already priced into base metals.
Aeris Resources (AIS) is a mining and exploration company exploring, developing, and producing copper out of Queensland.
Copper again made fresh decade highs last week but only to reverse gains and close lower by Friday, we remain bullish base metals & the reflation trade in general but we don’t believe the risk / reward favours chasing the markets current strength.
