Copper Futures (COMEX:HG) fell about 12.5% in this month of June, testing the macro VWAP for buyers while it may target the lower EMA50 on the monthly periodicity currently.

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The market is pressured by interest rate hikes and recession fears. China eased COVID-19 restrictions in Shanghai which was supportive for the demand side. Also, Chinese imports of copper concentrate hit a record high of 2.19 million in May. Meanwhile, the largest copper producer Codelco in Chile reached an agreement with the company to end a national strike which may boost the production and might have its bearish effect.

Monthly imbalanced while testing the decade’s VWAP for support.

The daily perspective is imbalanced to the downside since several days and trades below the Year’s developing value area which gives the market a bearish bias. Today the price of the metal is up by about 0.1% in the European/London trading session. However, the market was able to close with a buying tail on Friday which may or may not lead the price into a balanced behavior, where traders could lean on the extremes to conclude rotational scenarios.

Imbalanced to the downside, quite bearish below the Year’s value.

The hourly perspective trades around the prior week’s lower value extreme and may find sellers with absorption to test the mentioned lows to establish a lower balance extreme. Friday’s VWAP close level may serve as a supportive level in case of a drop lower as well as the lower day’s value extreme from Friday. 

Hourly balanced, hence traders may lean on the extremes. Several levels and areas monitored for auction’s reaction.

The managed money sector sold about 9,163 contracts of Copper Futures as of 21th June, with a combination of long liquidations and new short positions. Net selling position stands around minus 15,959 contracts and about to test the lower decade’s area to find potential buying again.