The September copper market started the week lower, continuing the short-term trend lower after last Thursday’s spike up to 2.8180 fail to hold. The copper market traded as low as 2.7130 on Monday and closed in the middle of its daily trade range at 2.7350. The copper market is on the defensive with Turkey’s economy and the crashing lira coupled with a weak Chinese equity market. Tariffs on US scrap exports could cause a decline in US scrap copper exports, possibly supporting world copper prices. Additional support comes from a possible strike at the largest copper mine in the world. September copper has been trading sideways with support around 2.7000 with a wedge pattern forming, causing a volatile point especially with any disruption of the supply and demand fundamentals. Momentum studies are approaching oversold conditions, and a close above 2.7500 needed to reverse the trend to the upside. Look for lower trade to continue with weak Chinese demand and threat of supply concerns easing with each day a strike is held off.
Copper Sep ’18 Daily Chart