Copper Bulls Denied Once Again
Better China Data
Copper prices have once again been turned lower at the 6.1090 level after bulls made a fresh attempt at breaching the level yesterday. A wave of risk on activity recently has helped copper prices regain upside focus as traders continue to display optimism around ongoing US/Iran negotiations. Copper prices have also been lifted by better data out of China recently which has bolstered demand expectations. Restocking activity ahead of the upcoming Labour Day holiday in China has seen increased demand. This comes on the back of better-than-forecast GDP data recently as well as stronger factory data, leading to an improved outlook for the world’s largest copper consumer.
Uncertainty & Volatility
Despite the fresh push higher yesterday, copper prices have come under renewed selling pressure today as uncertainty around the Iran war feeds into resurgent USD strength. Negotiations appear to be stalled as the stalemate around the Strait of Hormuz persists, with Trump warning there is no timeframe to end the war. For now, the outlook remains in favour of a continuation higher in copper with the metal likely to rally in response to any positive news on the Iran war-front. However, the marker remains equally vulnerable to a fresh drop lower in response to any deterioration in sentiment around the peace process or news of any ceasefire breach.
Technical Views
Copper
The rally in copper has stalled for now into the 6.1090 level and falling momentum studies suggest risks of a deeper correction. However, while price holds above the bull trend line and the 5.8550 level, focus is on a fresh push higher with 6.2845 the next bull target to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.