This week September copper continues the sideways action seen towards the end of last week. The copper market has seen some sideways consolidation, trading between 2.7445 and 2.7995. The market has seen a potential slowing of the downward trend with US and China trade tensions easing out of the headlines. The driving force still seems to be increased supply with higher Chilean production and Russian exports and decreased demand due to trade war concerns and weak Chinese economic prospects. Momentum studies have shown the copper market continues to be at oversold levels which should support a move higher if we can see a close over resistance, but that has yet to happen. A close above resistance at 2.8290 is needed to reverse the trend back to the upside. Resistance comes in at 2.80 with support at 2.7420 and 2.7170. Looking at a weekly chart, a break of the recent low looks to continue the trend lower to 2.6360.
Copper Sep ’18 Daily Chart