Copper futures continue to monitor global developments over trade disputes with China over its sister metals aluminum and steel. President Trump is considering a new trade package with China that could play a substantial role in the next direction for copper and could impact demand. Over the past two months copper has slowly channeled lower since the start of the year with expectations that the Federal Reserve will raise rates up to four times this year. This should start to curb demand for building in the United States and increase cost of capital for new projects.

Technically, copper looks to be trapped with the 50-day moving average at 3.1935 as well as where the downward sloping trendline comes in just above it. The longer term support is at 3.0345 at the 200-day moving average and a gap that has been left open at 2.7980. Using these levels for breakouts of key support and resistance should help determine the next likely direction.

Copper May ’18 Daily Chart


Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.