Image Source: Pexels
 

Copper futures fell by about 1.2% towards $3.7 per pound in the Asian to the European trading session, pressured by investors’ concerns about demand.

• Industrial production slowed in October, more than expected.
• House prices decline for the sixth month in a row, leading to lower demand for property developers.
• Bullish factors are supply concerns as global stockpiles have fallen to record lows.
• Current prices don’t reflect the supply tightness in the market, according to various reports.

The market is up by about 10% in this particular month of November due to the mentioned supply concerns and the slower-than-expected US inflation rate report which brought the dollar to tumble, by a potential slowdown of the pace of interest rate hike from the Fed. This was a supportive factor for commodities such as copper.

The daily interval surged out of a tight balanced price range which occurred for several weeks, leading the market to be imbalanced to the upside while current long liquidations let the market pull back from the highs, migrating lower for the fourth consecutive day in a row.

The hourly interval might establish a balanced price range while the swing lows are eventually targeted for inventory absorption purposes which could follow with an auction to lower prices due to the higher dollar and lower volatility combination. 

3 Weeks Ago

Intraday interval with a micro-balanced price range to find shorts to target the swing lows.

Forecast pointing to the downside towards $3.5 in the Quarter’s perspective while the market found visible buyers with core long positions around the lower standard deviation level of this particular decade.

The managed money sector bought about 10,921 contracts of Copper options and futures combined, as of the November 8th COT report. New long positions combined with short covering might be a bullish nuance for the market.

More By This Author:

U.S. Equity Indexes Weaker After Earnings
Steel Rises Supported By Chinese Economic Stimulations
E-Mini S&P 500 Boosted By Inflation Data