Traders added nearly 3.5K contracts to their open interest positions in Copper futures markets on Wednesday. Will the rebound extend further?
5 February 2020 | HYCM – The Doctor is feeling perkier Looking at the initial fall in commodities vs the fall in the Asian Weighted Index on coronavirus fears you can see how far commodities fell and how quickly. They fell much harder than equities.
Copper futures remain in recovery mode
We are now seeing a global rebound in equity prices with the Nasdaq making record highs yesterday. Asia is also in the green, hence, it is worth looking at copper futures. Copper is trying to hold that key support level marked on the weekly chart around the 2.500 handle. As momentum indicators turn positive I am expecting buyers from here, pullbacks into support and stops below recent lows.
Related: Reasons You Should Buy Copper Now
Copper has a long way to potentially recover if the market suddenly refocuses back on to pre-coronavirus optimism. Although European equity futures are in the red, it remains to be seen whether there really is a global equity recovery. Hence, keep copper on your radar. The Doctor has a good way to recover if he shakes off his recent coronavirus hit.
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