Copper Futures Markets Rebound: Will The Upmove Extend Further?


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 Market Rebound

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.

Copper Futures Markets

 

Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information please refer to HYCM’s Risk Disclosure.

Additionally, the content of this email is for information purposes only and it is not intended as a recommendation or advice. Any indication of past performance or simulated past performance included in advertisements published by HYCM is not a reliable indicator of future results. The customer carries the sole responsibility for all the businesses or investments that are carried out at HYCM.

    Share Your Opinion, Write a Comment