The copper market started the week making a new high in the May contract but failed to hold onto its gains, closing lower on the day. Support came from positive Chinese PMI readings but the sell-off doesn’t bode well for the bulls. The COT report came in with a net long position of 6,764 contracts which shows neither overbought or oversold levels. The market looks to continue its pullback to support with positive Chinese economic news needed to strengthen the bull case. Monday saw trade up to 2.9885 before closing the day at 2.9290. Support comes in at 2.8850 and then 2.8400. A close over 2.9465 is needed to reverse the trend back to the upside and test recent highs. From a technical standpoint a continued move lower looks to be the short-term trend.
Copper May ’19 Daily Chart
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