The price of COMEX Copper futures is down 2.67% at $3.8385 per pound on mid-Thursday trades.
The price of copper has been declining since early June. It has witnessed only two bullish sessions since then.
The policy tightening approach adopted by the Western leaders to fix the inflation mess has brought a significant fall in the asset. The inflation rate is advancing at a runaway pace and central banks are featuring rate hikes to tighten their grip on the injection of liquidity into the economy.
Meanwhile, the zero-Covid policy in China has raised concerns over the demand for copper. The Chinese economy is fighting the resurgence of Covid19 for the past three months. This has brought a major drop in manufacturing activities. It is worth noting that China consumes more than 50% of the total copper production and a slump in China’s demand has a significant impact on the copper prices.
Workers at Codelco are set to go on a nationwide strike in Chile starting today. This is in protest to the management’s decision to close the Ventanas copper smelter.
On the technical side, the RSI of COMEX copper futures stood at 25.92 and is currently trading below all SMAs: MA (5), MA (20), and MA (100). So, SELL position can be taken with the following target and stop-loss:
TRADE SIGNAL: COMEX COPPER FUTURES – SELL: 3.8000, TARGET: 3.5260, AND STOP-LOSS: 3.9820