Price action on copper has caught our eye, as its pullback from the YTD highs has paused above the November highs despite a surging US dollar. RSI (2) is overbought on the daily chart, and yesterday’s Doji held above the 20-day EMA. It's also holding above $4.00, whilst money managers and large speculators have continued to increase their net-long exposure to copper futures despite the pullback on prices.
- From here, the bias is bullish above 3.95 and for prices to have another crack at the YTD high
- Another approach is to scale into such a position with a wider stop, with a view to increase exposure if or when momentum turns higher sufficiently enough to call a swing low.
- From here, the bias is bullish above 3.95 and for prices to have another crack at the YTD high
- Another approach is to scale into such a position with a wider stop, with a view to increase exposure if or when momentum turns higher sufficiently enough to call a swing low.
The setup remains valid and we hope to now see copper prices move higher with risk appetite.