More strength for copper?
Before the US elections last year I wrote that one key area to be looking out for is if Democrats win both the House and the Senate races. This will likely mean a strong move from green investments likely to benefit from Biden's ambitious green plans.With both houses under Democrat control it will be easier for Biden's policies to pass.Joe Biden saidprior to the US elections that he will spend $2 trillion over four years to improve infrastructure, create zero-emissions, public transport and create clean energy jobs. Green investments stand to gain with a Biden Presidency. Copper stands to gain on Green investments.
Even before the US elections Wilderhill New Energy Global Innovation Index saw gains as they anticipated a Biden victory. Green technology relies heavily on copper for conducting electricity so copper gains in the short and medium term look likely. At least a buy on pullbacks for the medium term and 4.000 the next target for buyers going with the flow. On Friday's post we looked at a medium term entry for copper. Today we can see a short term entry for copper marked below. Over the week we will be on the lookout for any decent price action that can be uses to define and limit risk for copper buyers. The main risk to this outlook is if COVID-19 concerns keep growing and risk sentiment gets hit which will be a drag on commodities like copper.
