Over the last 6-weeks SFR has soared more than +60% but the underlying copper price has risen just +4% over the same time, not an exciting risk/reward backdrop for a stock that is usually closely correlated to the widely used industrial metal i.e. if copper fails to recover some of the last few weeks losses SFR could easily surrender some its recent gains.
- We believe SFR will need copper to regain its “Mojo” before it can attempt a rally towards $6 i.e. this will probably need China to calm down.
MM remains long and bullish SFR
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Sandfire Resources (SFR) v Copper ($US/25,000 lbs)
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Sandfire Resources (SFR) v Copper ($US/25,000 lbs)
