Looking at current news and the international political career so many savers sweat, which tries with the help of stocks and Co. to lighten their own savings portfolio somewhat.
As a result, the stock market world recently experienced a time of departure characterized by the superiority of the bears, which did not hesitate to mercilessly push the prices down.
Whether frustrated or out of panic, the gaze of the resourceful saver now swings into completely different spheres of asset development – the keyword is “commodities”.
It should be noted that gold has always been the bedrock of prudence or pessimists. In the general course of the precious metal can be seen therefore in numerous places that a lot of investors their assets switched to the golden metal, as soon as the prices of larger indices no longer gave the impression that it could sometimes go up again.
Important: Inform in time for the market situation
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But are there any alternatives to gold that may even seem more lucrative and therefore have much greater potential that only the most ambitious investors discover?
In view of this question, it can be argued that the gold market is a very well-known and well-rehearsed market, together with its investor base. As a result, indicators such as volatility or even market capitalization are on a level where you can not expect much surprises – and most investors appreciate the precious metal!
However, the fact is, however, that there are numerous other raw materials, which are probably not even known by the autonomous investor. At least trading on the world’s stock exchanges with many raw materials will sometimes make the inexperienced investor smile.
Of course, this article should not be given any advice in the direction of adventurous financial investment, which could end well or end in a huge loss.
The speech is supposed to be from comparatively saturated copper. As a result, copper is another metal that, apart from gold, has a larger market and a reputable size of investor base – the latter is more crucial than you might initially realize.
A quick look at the US copper price, however, does not call for jumps of joy. As a result, copper, like gold, also had to take something in the past, which can be seen directly in the chart image.
Nevertheless, at second glance, the potential of the whole is much more significant. After all, at the moment the market is in a deeper phase in terms of price – probably still in the midst of a correction. However, the fact is that this correction has either already been completed, or at least is already at a very marked stage, and as a result could be the beginning of a recovery in the immediate future – and then you should be there.
For some savers, who does not deal too much with the business and the operation of the stock exchanges, the statement, to enter exactly then, if the prices and courses lie on the supposed ground, may sometimes sound questionable. After all, prices have dropped many percentage points in the past, while the general mood is bad. So why, should now be the ideal point to enter?
The whole can be hinted at with the last financial crisis 2008, finds however in the history still many further clues, at which it can also be observed in the short term.
On March 9, 2009, a closing price of 3655.00 points was reached in the DAX – the blackest day of the financial crisis. An investment with a matching ETF of the DAX on exactly that day or at least the day after with 1.000, – € would have dropped in exactly three years a profit, which would be explained by the increase from 3655.00 counter to 7100,00 points. With this increase of almost 100%, the saver would have been able to enjoy a portfolio worth € 2,000 at this time.
As already mentioned, there are numerous examples which show approximately the same result. In doing so, one’s gaze can also be focused on short-term trajectories, for example if a 10% increase has been achieved in one month, which is actually much more phenomenal – it’s often not as impressive as a long-term example of this kind.
With regard to the US price of copper and the associated chart, some interesting assumptions and forecasts can be exploited with the aid of the chart image. In fact, such forecasts can help to achieve much more accurate results according to your own wishes.
Professional traders and investors often use technical chart analysis to identify entry and exit prices, especially on a short-term basis, while perceived resistance and support lines can help to wait for the right time to feed it with other information, such as major political events imminent.
However, the fact remains that there must be a certain amount of experience and knowledge to be able to produce such analyzes and to be able to estimate their content to the correct extent. As a result, the best analysis is of no use if, for example, a trade war breaks out and the trader simply shoots that information down.
Ultimately, the market is driven by the emotions of investors, which is why many analytic models even take that approach to deliver results that are as realistic as possible. Finally, however, it should be emphasized that blind faith in a single tool may not achieve the success you desire.
In order for the project to be able to prepare a suitable analysis to be successfully put into action, the interested party should inform himself in advance about suitable analysis variants. As a result, there is a whole range of potential approaches and ways to put this endeavor into action. Nevertheless, an investor should also focus on which concrete actions the particular analysis structure entails. Because even here there are differences and not everyone really likes everyone. As a result, you must try to figure out the method that will appeal to the prospective user of technical chart analysis and may even bring some joy – after all, it will be easier to learn and apply.
An exemplary method of analyzing copper’s chart image in more detail is the Elliott Wave Theory, which is well known for focusing heavily on the expected emotions of the investor community, and thus, in almost uncanny many cases, exactly.
Especially for newbies this method seems to be quite attractive, because not necessarily sophisticated math skills have to be available to succeed. However, it does not hurt to have heard at least once of the Fibonacci number series, as this is involved too much in the use of Elliott wave theory – and also in many other technical analysis methods.
Together with the Elliott Wave Theory and the knowledge needed to apply the method, a potential prognosis for copper can now be drawn for the years 2019 and 2020.
Of course, it must be remembered that commodities are known to behave more volatile and generally more impetuous, which can plunge new investors into forecasting problems. Nevertheless, some clues can be found that give an idea of the potential further course.
With a price of $ 2.61 in September 2018, the price of copper on a weekly basis has been able to form a floor that has held to this day after being re-tested in the last week of Christmas of the previous year.
In fact, this brand turns out to be relatively crucial for the at least short-term course of the copper price. As a result, a fracture of the soil would cause the correction that had already begun in mid-2018 to be in the potential end cycle. This is not necessarily good news for those who are still in the boat.
However, investors looking for a suitable entry point will find what they are looking for in such a scenario. Consequently, the completion of the correction would lead to a short to medium-term rise in the price of copper should no extraordinary news emerge that would have a lasting adverse effect on sentiment in this market.
However, if the ground is not broken – and this is what it looks like at present – the market is in a tormenting sideways phase, which sooner or later will provoke a strong reaction. If the reaction appears in the form of a price loss, the same scenario occurs, which has been described previously.
However, if prices suddenly rise, investors will be very happy on a short-term basis, because then the copper price should at least improve by a few percentage points. After completing this move, however, nothing good should come, as the correction has still not come to a close.
Finally, two larger scenarios are probably possible realistic:
Consequently, the current situation turns out to be quite crucial for the further course. Invest Investors should exercise caution and pull out early rather than late as soon as the first signs of a slowdown appear.