In light of the surging momentum towards environmentally friendly energy sources, renowned economist and former Scotiabank vice president, Patricia Mohr, envisions a resurrection in demand for crucial metals.
Speaking at the recent Prospectors And Developers Association of Canada (PDAC) conference, Mohr expressed her confidence in both copper and uranium, foreseeing a significant rise in their prices. Given copper’s critical role in powering various energy sectors, especially renewables, Mohr predicts a notable uptick in its value. She also highlights a potential surge in demand for uranium.
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Analyzing copper from a technical perspective reveals a positive outlook for the medium-to-long term, as the commodity is currently trading within a descending channel pattern on the daily chart:
The Copper Chart: Initiating its descent on March 18, copper has been forming lower highs and lows within the channel. The most recent peak was recorded on March 21 at $4.13, with the latest low hitting $3.98 on Wednesday.
- Thursday saw copper poised to create a long-legged doji candlestick on the daily chart. This pattern signifies a struggle between bulls and bears, potentially hinting at a local peak and an upcoming pullback. Should this occur, Thursday’s peak becomes the next lower high in the downtrend.
- While descending channel patterns indicate short-term bearishness, they can signal future bullishness. A breakout from a descending channel on above-average volume often suggests a longer-term reversal to the upside.
- Key levels to watch include resistance at $4.13 and $4.23, and support at $4.02 and $3.91.
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