Copper collapsed on the news that China will sell its reserves, and that the Federal Reserve will raise rates much earlier than scheduled.
But many analysts say low prices open great opportunities for long positions, especially since China's actions will have no impact on supply and demand. In addition, they believe that copper will be in short supply over the next three years, as it will take time to expand.
Therefore, traders can still work for an increase, but only if they follow this scheme:
The key level is $ 3.8, which is a good support-resistance level. Through the strategy presented above, copper may trade in the range of $ 3.5 - $ 4.0.
The idea presented is within the framework of Price Action and Stop Hunting methods.
Good luck and have a nice trading day!
