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Copper Hits Significantly Oversold Territory

  • Crude oil prices have increased almost 2% today, helped by US drillers running low on drilled but not completed wells which could take longer to continue to increase production going ahead, whilst Kazakhstan's oil output is down 22% from May with planned maintenance. News that Ecuador oil output has rebounded 90% after political protests saw a small dip that was quickly reversed.
  • CFTC money manager net longs for WTI and Brent were trimmed last week to the lowest since mid-May.
  • WTI is +1.96% at $110.55, clearing resistance at $110.09 (20-day EMA) and opening $114.05 (Jun 29 high) required to see a resumption of the recent bullish trend.
  • Brent is +1.68% at $113.50 as it moves further away from support at $108.03 (Jul 1 low) but continues to sit off $116.24 (Jun 29 high)
  • Gold is -0.24% at $1807.13 after a quiet session, sitting squarely between resistance at $1830.5 (20-day EMA) and support at $1784.6 (Jul 1 low).
  • Copper meanwhile continues its slide, down a further -2.5% to $8048 for a 30% decline from its all-time high in early March as copper enters a bear market with global economic activity decelerating sharply. The RSI shows the metal as being ‘significantly oversold’.

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