Copper: Long-Term Short
Copper Futures, Daily Chart Analysis
“Dr. Copper” as a lot of investors are calling the commodity because of its close correlation with the global economy, enjoyed a bounce in recent weeks, as the Chinese stock market stabilized, the Dollar took another nosedive, and stock markets remained near their all-time highs. The rally now reached a strong resistance zone near the $2.70 level, and odds favor a downturn, as US economic numbers are weak, stock markets are in the danger zone for a deeper correction, and the Dollar is also looking ready for a bounce.
We expect the commodity to head back towards the $2.50 support as the range that dominated trading since the end of the monster Trump-Rally is likely to stay intact in the coming weeks. We suggest a stop-loss above the $2.75 level, while a good initial target for the move could be around $2.52.