Copper Futures–-Copper futures in the July contract is currently trading lower by 530 points at 2.7215 hitting a fresh 14 week low following the stock market lower as the Dow Jones Industrial Average is down 450 points all due to the fact of no trade agreement has come about with China.
I have been recommending a bearish position from around the 2.8240 level and if you took that trade continue to place to stop loss above the 2 week high standing at 2.9235, however that will start to be lowered on a daily basis therefor the monetary risk will also be reduced.
The entire commodity sector across-the-board except for oil today is lower as I see no reason to be bullish as I have many bearish recommendations so stay short as I will be looking at adding more contracts to the downside once the risk/reward become more in your favor which will take about another week.
Copper prices are trading far below their 20 and 100 day moving average as the trend clearly is to the downside with the next level of support at 2.70 and if that is broken as I have talked about in many previous blogs I think we will retest the contract low of 2.56 in the coming weeks ahead.
The trade war with China certainly looks to be escalating as that is a real problem for the commodity markets and until that situation is resolved lower prices are ahead in my opinion.
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