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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Trade idea: short copper amid price drop

There’s been a technical break of the recently established 7866 line of support for LME copper.

Video poster image

Traders have bought back into the metal, but as IGTV’s Jeremy Naylor says, the break opens up the prospect of further lower lows. A candle close below that 7866 support then brings in the 7420 lows of November 2022.

(Video summary)

Profit from falling copper prices

Jeremy believes that there might be a chance to make money by selling copper. He says there has been a drop in the price of copper because people are worried about the world economy. Jeremy thinks that if the US and French economies show more signs of weakness, the price of copper could drop even more.

Copper chart

He shows a chart that highlights the price of copper going up in January but then dropping below an important level in October. Jeremy mentions that the current price is 79.61, which is below the line that shows support from October 5th. He suggests that a good strategy would be to sell copper.

Managing risk

To manage the risk, he recommends putting an order to sell if the price goes above 8000 and waiting to confirm with a candlestick pattern that the price is going down before making the trade. Jeremy thinks that if the price does go below the support line at 78.66, it could go even lower to a support line at 74.20.

In conclusion, Jeremy thinks that the price of copper is low because people are worried about the world economy. He suggests selling copper and waiting for confirmation from a candlestick pattern before making the trade. If this happens, he expects the price to potentially drop to 74.20.

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