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Copper Down Nearly 30% From Its All-Time High, Currently ‘Significantly Oversold’

  • 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

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