The price of Copper futures at COMEX is down 0.61% at $4.2285 per pound on mid-Thursday trades.
Although copper opened the week on a bullish note, gaining around 1.60% on Monday, the price fell on Tuesday and Wednesday, declining around 2.00%, erasing the gains of Monday.
Copper COMEX futures price retreated on Tuesday from a two-week high of $4.30 per pounds as the market participants remained risk-averse alongwith the potential of declining demand in China. COVID-led lockdowns in the world’s biggest copper consumer China are negatively impacting copper prices.
Additionally, fears emanating from the Russia-Ukraine crisis and China’s COVID conditions, as well as fresh fear of a Sino-American tussle weigh on the market sentiment and copper prices.
The future prospect of copper price will be determined by the risk catalysts surrounding inflation, growth, and COVID.
On the technical side, the RSI of COMEX copper futures stood at 42.46 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:
TRADE SIGNAL: COMEX COPPER FUTURES – SELL: 4.2045, TARGET: 4.0850, AND STOP-LOSS: 4.2655