Copper prices have been on the rise recently, recovering from a decline in October. The price of copper has reached a three-week high and is approaching $4.45 per pound.
The increase in price coincides with the opening of China's National People's Congress, where investors are eagerly awaiting announcements about potential economic support measures. There are reports suggesting that China may consider a stimulus package exceeding 10,000 billion yuan to address economic challenges, including the real estate crisis.
The anticipated stimulus measures in China are expected to drive up demand for copper. Rising copper prices are seen as a positive indicator for the global economy, as they signal increased demand in sectors such as construction, manufacturing, and technology.
The configuration of copper prices has improved technically, with the metal breaking through a bearish trend line. If copper prices break above $4.7 per pound, it could indicate a bullish reversal.
For investors, strategic entry points are recommended, with a buying opportunity above $4.4 per pound and targets set at $4.7 and $5.0 per pound. A stop-loss level at $4.3 is advised to manage risk effectively. Traders should stay vigilant and monitor the outcomes of the National People's Congress and potential economic policies.
The copper market is sensitive to economic indicators and government actions, making it an attractive area for investment.