Copper set to end June with a 16-month low

copper

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:

TRADE SIGNAL: COMEX COPPER FUTURES – SELL: 3.6445, TARGET:3.4965, AND STOP-LOSS: 3.7265

About Author

Related posts

Bank of America

Bank of America Clients Continue to Buy the Rally, New Data Shows

Bank of America is trading down 1.38% at 33.49 Despite analyst warnings that the ongoing relief rally in equities is close to peaking, Bank of America clients have continued to buy U.S. equities. Jill Carey Hall, the equity and quant strategist at BofA, noted that the bank’s clients were...

Read More
U.S. Dollar Index

Dollar edges lower as currency markets pull back on Friday’s moves

U.S. Dollar Indexis trading down 0.14% at 106.24 The dollar fell on Monday, losing some of the gains it had made from Friday’s U.S. jobs data, as currency markets pulled back on their initial reaction and waited for Wednesday’s inflation data to give more clues about the Federal Reserve’s...

Read More
European Stock Futures

European Stock Futures Edge Higher; Nonfarm Payrolls in Focus

DAX 40 is trading down 0.18% at 13619.90 European stock markets are expected to open marginally higher Friday, boosted by generally positive quarterly corporate earnings, but the upcoming U.S. payrolls data is likely to prompt a degree of caution. At 02:00 AM ET (0600 GMT), the DAX futures contract...

Read More

Leave a Reply