Copper Futures—The copper market rallied significantly off of session lows yesterday bouncing off of oversold conditions as today prices are unchanged at 2.6500 a pound as I’ve been recommending a bearish position over the last month from around the 2.8240 level and if you took that trade the stop loss now been lowered to 2.72 as an exit strategy.
For the bearish momentum to continue we have to break yesterday’s low of 2.6110 in my opinion as the downtrend line still remains intact as prices have been supported due to the U.S dollar hitting a 2 week low in yesterday’s trade.
The chart structure will start to improve later this week therefor the monetary risk will also be reduced as this market continually grinds lower on a weekly basis as prices are right at major support looking to crack the January 3rd contract low of 2.56 in my opinion.
Industrial metals are still experiencing weak demand as I don’t have any other recommendations out of the precious metals as gold prices have certainly broken out to the upside as a flight to quality as there is so much worldwide uncertainty on trade especially with Mexico and China so if you are short copper stay short as I think this is just a pause.
CHART STRUCTURE: IMPROVING
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