May copper started the week higher, trading up to 2.9325 before pulling back and closing at 2.9120. This morning we saw another push to the upside on positive supply and demand headlines. Last Thursday we saw the market break on reports of an increase in both LME and Shanghai copper stocks as well as lower economic data from China. Despite fundamental news pressuring the market we saw May copper hold sideways support at 2.8810 as well as the upward sloping, longer term trend line. This week, forecasts of a possible global copper deficit and a change in China’s tax policies that would boost demand for copper brings support. Sideways trading, off support this past week has shown value between 2.8810 and 2.9000. With the added support coming from positive supply and demand news the trend higher should test resistance at 2.9590. A close below 2.9000 and then 2.8810 would reverse the trend to the downside.
Copper May ’19 Daily Chart
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