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

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

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.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.