Copper set to end June with a 16-month low
30 Jun 2022
The price of COMEX Copper futures is down 2.33% at 3.6925 per pound on mid-Thursday trades.
Copper prices further declined on Thursday. This makes copper prices on track for the biggest quarterly percentage fall since March 2020. The potential of a recession occurring coupled with the decline in demand from China due to the lockdowns has significantly impacted copper futures prices.
The price of COMEX copper futures is oscillating in a narrow range of $3.7155-$3.8455 this week after remaining in the grip of bears for the whole month.
Copper which has been considered a major indicator of global economic health has plunged to 16-month low on June of 2022. Elsewhere, the geopolitical concerns surrounding China and Russia also weigh on the metal prices. The base metal has been under pressure from a challenging demand outlook owing to China’s COVID lockdowns and broader macro concerns over monetary policy tightening and growth fears.
However, micro fundamentals for the complex remain broadly supportive, given output disruptions, supply dislocations and relatively thin exchange inventories.
On the technical side, the RSI of COMEX copper futures stood at 24.58 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: