The price of COMEX copper futures is down 0.42% at $4.4380 per pound. It continues its negative momentum which rebounded briefly on Wednesday as China’s central bank announced that it will step up its support for the economy.
The metal on Monday fell to its lowest in three months with mounting concern about the demand outlook with the spreading lockdowns in China and the continuing war in Ukraine.
Copper’s short-term demand outlook has worsened as the short-term demand outlook for copper has been reduced and inventories at exchange-monitored warehouses have risen during the past four weeks. With the EU planning to reduce its energy dependency on Russian energy, the electrification of the world is likely to accelerate which would require an abundant amount of copper.
Chile, a supplier of 25% of the world’s copper, has seen production slow in recent months, and with an “anti-mining” sentiment emerging in the newly elected government, the prospect of maintaining or even increasing production seems challenging.
On the technical side, the RSI of COMEX copper futures stood at 36.45 and is currently trading below all SMAs: MA (5), MA (20), and MA (50). So, SELL position can be taken with the following target and stop-loss: