The big news over the weekend was the meeting between Trump and Xi and the March copper contract started the week higher opening at 2.8500. Copper traded up to a high of 2.8580 before being pressured lower and closing at 2.7915. The copper market has experienced choppy, sideways trading for the past couple months and U.S./China trade progress should continue to provide support. A slight increase in Chinese manufacturing PMI coupled with strength in Chinese equities is also supportive. LME copper stocks showed a decline down to a new 10 year low, providing an improved global demand outlook even with concerns still looming on China’s demand. Support in the March contract comes in at 2.7610 with resistance at 2.8490. While the longer term outlook in copper is bullish the near term trade could continue to see choppy price action until some fundamentals line up to provide a push for a trend higher.
Copper Mar ’19 Daily Chart