Buy - Copper Warrants (ZHGKOB)
*** GENERAL AVICE ONLY***
Trade Date: 14/05/2024
Citimini Copper Warrants are Warrants that track the underlying Copper Futures. For each 1c (USD) that the Copper Futures moves, the Copper Warrants move 1c (USD). We are buying the ZHGKOB. These Copper Warrants have an effective gearing rate of 66% and have an inbuilt stop loss at $3.50 based on the July Copper Futures
Recommendation
Buy Copper Warrants (ZHGKOB)
Entry price: $2.42 ($4.785 spot)
Target Price: $2.75 ($5.00 spot)
Stop Loss: $2.15 ($4.55 spot)
Rationale:
Copper has been trending higher since March and is now trading near record highs. There has been lots of talk about copper shortages recently and with the time it takes to bring on new supply, expect this shortage and the trend higher in prices to continue. The high price for copper was just over $5 in early 2022, so looking for this level as the first price target. Look to start with a half position with the view to add to the position if the position trades positively
Here is a recent article written by Mark Gardner with some more thoughts on Copper
https://www.livewiremarkets.com/wires/3-reasons-why-we-are-on-the-cusp-of-a-commodity-super-cycle
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.