Copper Trend Lower Pauses to Start the Week

July 17, 2018 8:54AM CDT

This week September copper continues the sideways action seen towards the end of last week. The copper market has seen some sideways consolidation, trading between 2.7445 and 2.7995. The market has seen a potential slowing of the downward trend with US and China trade tensions easing out of the headlines. The driving force still seems to be increased supply with higher Chilean production and Russian exports and decreased demand due to trade war concerns and weak Chinese economic prospects. Momentum studies have shown the copper market continues to be at oversold levels which should support a move higher if we can see a close over resistance, but that has yet to happen. A close above resistance at 2.8290 is needed to reverse the trend back to the upside. Resistance comes in at 2.80 with support at 2.7420 and 2.7170. Looking at a weekly chart, a break of the recent low looks to continue the trend lower to 2.6360.

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.