The December copper market started the week trading down to 2.7350, the lowest level since September 20th, before rallying to close positive for the day at 2.7710. The past couple weeks the copper market has been trading in a sideways channel between support at 2.7415, and resistance of 2.8670. Fundamental supply news showing that Chile’s August production declined coupled with the stock market trending up off its lows gave support yesterday. The market continues to focus on U.S. and China trade talks and any headlines showing continued tension should provide resistance. Barring any announcements of U.S. and China trade agreements, look for the market to trend sideways to lower, with 2.6985 being the next level of support. Trade breaking that support level will continue the trend to the downside with the objective of 2.6030. Resistance is seen at 2.8060 and then 2.8670 with trade over the second resistance level needed to continue the trend to the upside.
Copper Dec ’18 Daily Chart