Copper for March delivery has come off a test of 2.80 despite a strong payroll number on Friday with the weekly Shanghai copper warehouse stocks showing an increase of 23,000 tons, as well as further weakness in Chinese factory data. This comes amidst ongoing concerns involving global and Chinese growth, faltering demand, and continuing U.S. and China trade talks. Chile noted an increase in supply with indications showing that copper production rose 4.3% last month in comparison to year ago levels which contributes to bearish supply side news.  Copper is immediate term overbought and remains bearish trend with the range seen between 2.80 and 2.60.  The industrial metal is vulnerable to a retest of 2.70 with the next level of support coming in around 2.76 and 2.74.

Copper Mar ’19 Daily Chart

Copper Mar '19 Daily Chart

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Alex Turro

Senior Market Strategist

Alex began his career with an IB at the Chicago Board of Trade after graduating with a BA/BS from Indiana University. He then went on to work for a proprietary trading software company before joining RJO Futures as a Market Strategist.

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