• 725 days Will The ECB Continue To Hike Rates?
  • 726 days Forbes: Aramco Remains Largest Company In The Middle East
  • 727 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,127 days Could Crypto Overtake Traditional Investment?
  • 1,132 days Americans Still Quitting Jobs At Record Pace
  • 1,134 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,137 days Is The Dollar Too Strong?
  • 1,137 days Big Tech Disappoints Investors on Earnings Calls
  • 1,138 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,140 days China Is Quietly Trying To Distance Itself From Russia
  • 1,140 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,144 days Crypto Investors Won Big In 2021
  • 1,144 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,145 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,147 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,148 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,151 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,152 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,152 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,154 days Are NFTs About To Take Over Gaming?
Trading On The Mark

Trading On The Mark

Trading On The Mark

Our work is grounded in several technical methods. We make use of Elliott Wave, Gann techniques, Fibonacci relationships in price and time, cycles, and other…

Contact Author

  1. Home
  2. Markets
  3. Other

Copper Sentiment Agrees With Technicals

Sentiment for copper prices appears mixed to negative. The worst prospects for demand may be in China, where copper imports have a large effect on worldwide prices. Currently, the majority of China's copper pipe manufacturers now believe prices for their feedstock will decline further. At the same time, Chinese authorities have indicated very recently that they may crack down on the ability of businesses to import the metal as a way of providing collateral for business loans. Halting that practice may result in more copper being released from bonded warehouses where it sits unused, and that is likely to drive price down.

Our technical analysis continues to agree with that downward forecast, although we may see price rise for a few weeks even in the face of immediately bearish sentiment before the decline sets in again.

In our projection into 2015-2016, we still believe the 1.78 area is a likely long-term downward target, although the path from here to there will have some zigzags along the way. The monthly chart for our long-term projection can be found at our website.

Nearer-term price targets also remain unchanged, but it is helpful to see how price is behaving with respect to the downward channel on the weekly chart below. Clearly price recognized the resistance we identified as being just overhead at the end of May, and it has fallen away from that area. Major stepping-stone support levels to watch through the remainder of the year include 2.67, 2.52, and 2.34.

Copper Futures - Weekly Chart

The daily chart shows price as retracing part of the recent wave 'i'. We believe the retrace can go a bit higher, and the area from 3.1220 to 3.1500 represents a good place to watch for the downward trend to resume. We have drawn a speculative path on the daily chart below.

Copper Futures - Daily Chart

It is important to keep in mind that price can accelerate downward at this point. It is safer now to sell from minor highs rather than to try catch upward moves.

 

Back to homepage

Leave a comment

Leave a comment