Copper Continuing Sideways ActionPosted 03/15/2018 2:11PM CT |
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