Against the Donald Trump's complaints, US industrial metal producers were the biggest drop.
The president said Thursday he intends to introduce a 25 percent tariff on steel imports and 10 percent on imports of aluminum in the United States. This has caused mass discontent among producers not only in Europe and China, where it is the main import but also among the US producers. A few hours after Trump's announcement from the White House announced that tariff rates are only "intentions" and may not be introduced in their form. This, however, failed to reassure the mining companies. The US Steel Index lost more than 8% in just a few hours after Trump's comment, and today it trades at levels around 43.65 points.
When there is such a volatility in the market, a large number of traders run aside, but great fluctuations create perfect conditions for profits. Where to look for them?
Let's look at the futures of aluminum - 18 March 2018
The metal price has risen steadily over the past two years, outlining a steady upward trend. What we should pay attention to as a trader is the good technical position of the price at the moment and the strong foundation that predicts appreciation of the metal. Considering the main upward trend, horizontal levels of support, the absorbing bar and, in addition, the DeMarker 8 boost signal, the long positions of current levels are perfectly suited to SL at 2050 levels.
Fundamental: If the restrictions on the White House come into force, it will significantly limit the global circulation of metals and will lead to increased stockpiles by companies and to underproduction, as the actual placement of the produce will take place, hard. If we follow the simple logic of supply and demand, less output and increased demand would result in a significant price increase.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Derivatives and margin trading involve a high degree risk level. You should not trade Forex and CFD unless you fully understand how it functions, what your benefits can be, what your risk is, and what you may lose. Please, note that the losses can be practically unlimited and that the initial deposit will not permanently limit the risk. You have to fully realize your financial status and make sure that trading in derivatives hides the risk of losing the entire amount invested. Invest only the amounts that you are able to lose.