CME Copper rallied to $4.2 for the first time in 6 weeks (gaining 0.55 cents). It later dropped, erased yesterday’s gains and closed at $4.12.
Core Retail Sales in United States fell short of market expectations (-0.3%) with a reading of -0.8%, continuing the decline from the previous figure of 0%. United States Retail Sales published yesterday at 12:30 UTC came out at -1%, falling short of the -0.4% projections and continuing its decline from the previous -0.2% figure.
Amid the market gloom, United States CFTC S&P 500 speculative net positions released yesterday at 20:30 UTC with a figure of -307,600, while the previous figure was -321,500.
Yesterday's price action generated a Japanese candlestick pattern showing 'Bearish Harami' is a candlestick chart indicator used for detecting reversals within a prevailing bull trend. It is generally indicated by a small price decrease that's contained within a broader upward price movement and is commonly associated with a bullish trend coming to an end. Trend analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Copper formed a session range of $4.09 to $4.2 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $4.1. According to asset volatility analysis, the Copper future's upper Bollinger Band® is at $4.14 which indicates a further downward move may follow. Analysis of CME Copper's recent price action suggests the Copper future could begin to recover as it approaches significant support, now 4 cents away from $4.08. Dipping below could be an indication that further losses are ahead.
Overall, while Copper has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Copper's value drop coincided with the fact that Gold lost 1.83% yesterday and closed at $2,055.3. Silver is down to $25.46, losing 46 cents, after ending the previous session around $25.93. Platinum slips 0.66% yesterday and closed at $1,065.5.
The past 6 months have been positive for Copper as it appreciated 19.35%, having traded as low as $3.21.
