Copper Falls to Yearly Low

July 2, 2018 10:13AM CDT

Copper continues to fall for the fourth consecutive session down 0.0295 or 0.9925%, trading at a yearly low of 2.9365. This comes amid an ongoing trade threat with China as well as concerns about Chinese economic growth. The release of recent weak Chinese economic data provided signs of slowing growth with Chinese power grid investment and property completions dropping 21% and 10% in May respectively. Possible concerns about supply disruptions have tempered with wage negotiations at the BHP Billiton copper mine at Escondida progressing well. Concerns about additional tariffs remain at the forefront with fears of the subsequent impact on Chinese demand. Copper is extremely oversold with possible exhaustion in the near term with a further downside target of 2.90. Resistance comes in around 2.98 and 3.01.

Copper Sep '18 Daily Chart

Copper Sep '18 Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.