Taki Tsaklanos over at Investing Haven is out with his annual copper outlook, which remains firmly bullish for the important metal:
When it comes to the price of copper in 2018 we see a very interesting pattern on copper’s chart. In sum, copper looks strong, and we stick to our belief that $3 was a very important price level.
The pattern we see on copper’s chart which is the basis for our copper price forecast 2018: a wide gap between $3 and $4. Yes, correct, we believe that copper will rise to $4 in 2018, provided of course that $3 holds strong.
Tsaklanos also notes that investors should probably ignore the news cycle surrounding copper and simply concentrate on price trends. Here are his thoughts on those trends:
Between $3 and $4 the copper market is bullish. Above $4 it is wildly bullish … but that’s probably not for 2018 but rather for an even longer term forecast which we will do in some 12 months from now.
In summary, copper’s chart looks bullish, and so is his outlook.
The iPath Bloomberg Copper Subindex Total Return Sub-Index ETN (JJC) was unchanged in premarket trading Thursday. Year-to-date, JJC has gained 26.38%, versus a 21.78% rise in the benchmark S&P 500 index during the same period.