A Copper Price Forecast For 2017

The price of copper has a special (read: strategic) meaning in the context of markets. It is associated with the state of the economy, acting as a barometer of economic strength, hence its alias “Dr. Copper.”

What is our copper price forecast for 2017? That is a great question, but not an easy one to answer.

Intuitively, one would say that copper would go lower in 2017, with so many unknowns and problems in the world. Think of geopolitical tensions, hardly an economic growth in developed markets, declining employment participation rates, and the likes.

Financial institutions and media have a slightly consistent view as their 2017 forecasts are neutral to bearish:

In other words, most analysts are not very bullish on copper.

Investing Haven copper price forecast for 2017

As always, we rely on charts for our forecasts. We believe the very long term copper chart is helpful to answer above question.

Though copper tends to move in a very volatile way, we consistently see that copper prices have historically traded above or below $1.60. Until 2004, copper was trading below that price level, while that changed after 2004.

In 2017, we believe that the price of copper can do two things:

  1. Fall towards the $1.60 level.
  2. Rise from here onwards.

The line in the sand is the rising trend line which comes in at $2.10 currently (it will be at $2.25 in the summer of 2017). In other words, as long as the copper price remains above that trend line, we believe the price of copper will go higher or stabilize in 2017. However, as soon as that trend line is broken, the copper price will fall towards the $1.60 area.

Disclaimer: InvestingHaven.com makes every effort to ensure that the information ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with