Copper FuturesLong
Copper bulls to return around $4.00?
Updated
Price action on copper has caught our eye, as its pullback from the YTD highs has paused above the November highs despite a surging US dollar. RSI (2) is overbought on the daily chart, and yesterday’s Doji held above the 20-day EMA. It's also holding above $4.00, whilst money managers and large speculators have continued to increase their net-long exposure to copper futures despite the pullback on prices.
- From here, the bias is bullish above 3.95 and for prices to have another crack at the YTD high
- Another approach is to scale into such a position with a wider stop, with a view to increase exposure if or when momentum turns higher sufficiently enough to call a swing low.
- From here, the bias is bullish above 3.95 and for prices to have another crack at the YTD high
- Another approach is to scale into such a position with a wider stop, with a view to increase exposure if or when momentum turns higher sufficiently enough to call a swing low.
Note
A strong bullish candle has formed to suggest the swing low has already been seen, thanks to a less-hawkish-than-expected Powell and a weaker US dollar. The setup remains valid and we hope to now see copper prices move higher with risk appetite.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.