In the midst of a global shift towards sustainable energy sources, economist and commodities expert Patricia Mohr anticipates a surge in demand for key metals.
Speaking at the recent Prospectors And Developers Association of Canada (PDAC) conference, Mohr expressed optimism towards the future of copper and uranium, citing their essential roles in various energy sectors.
With copper’s significance in electricity generation for renewables, Mohr foresees a notable increase in its price. Similarly, her positive projections extend to uranium, indicating a potential uptick in demand for this metal.
Read Next: China Approves Largest Copper Mine In The World In Its Bid To Outpace US
Trending: DEA Comes Out Of The Shadows To Ensure Cannabis Rescheduling Process Is Not Being Done Under ‘Shroud Of Secrecy’
For those interested in the base metals sector, Teucrium’s AiLA Long-Short Base Metals Strategy ETF, ticker symbol OAIB, presents an avenue for investment. This ETF concentrates on crucial commodities and employs a market-neutral approach, aiming for positive returns irrespective of market conditions.
Tracking the AiLA-S022 index, a reputable benchmark, OAIB has shown an annualized return of 12.65% from 2017 to 2023. Leveraging a systematic methodology incorporating proprietary machine-learning technology, AiLA has delivered consistent results.
From a technical analysis perspective, copper appears poised for an upward trajectory in the medium-to-long term, exemplified by its descending channel pattern on the daily chart:
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Copper Chart: Commencing a descent on March 18, copper has formed a series of lower highs and lower lows within a descending channel. The most recent lower high hit $4.13 on March 21, while the latest lower low touched $3.98.
- Thursday witnessed copper potentially forming a long-legged doji candlestick on its daily chart, signaling a battle between bulls and bears. Such a pattern could indicate a temporary peak with a retracement looming. In case of a reversal, Thursday’s peak may function as the next lower high in the downtrend.
- While descending channel patterns suggest short-term bearishness, they can hint at a future bullish trend. A break above a descending channel with substantial volume can signal a long-term upward reversal.
- Key levels for copper include resistance at $4.13 and $4.23, in contrast to support levels at $4.02 and $3.91.
Image sourced from Shutterstock