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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- The surge in recession fears globally (particularly in Europe) has been weighing on copper prices in recent weeks.
- The industrial metal is down nearly 30% from its all-time high reached in early March, and the June selloff confirmed that copper has entered into a bear market as global economic activity keeps decelerating sharply.
- We previously mentioned that leading indicators (i.e. China Li Keqiang) have been pricing in significantly lower coppers prices in recent months.
- Copper is approaching its next support at 353.50, which corresponds to the 50% retracement of 206 – 501 range.
- A break below that level would open the door for a move down to 318.70 (61.8% Fibo).
- However, RSI is currently showing that the industrial metal is ‘significantly oversold’, which may therefore ease the selling pressure in the short term.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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