Trade view /
01 September 2016 at 1:34 GMT
Copper is potentially breaking lower on the back of a stronger USD and a Federal Reserve that is getting ready to hike, with September potentially a live meeting.
At the same time, copper dynamics are under duress, as China cuts its imports while raising its copper exports.
Demand woes could be set to continue, see the recent take by our commodity strategist Ole Hansen: Warning lights flashing for copper
. Note we also offer equity options on Jiangxi Copper, allowing this to be expressed with long puts.
The key risks are: a poor nonfarm payroll number this Friday, weaker USD, China bounce, and supply disruptions.
Management and risk description
Entry: $HK 8.96 (close August 31).
Stop: $HK 9.50 (minus 5.7%).
Target: [50% clips]
$HK 8.50 (+5.4%)
, $HK 8.00 (+12.0).
Time horizon: one to three months.
Jiangxi Copper one-year
Jiangxi Copper five-year
– Edited by Gayle Bryant
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