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Dr Copper recovers from coronavirus fears

HYCM

By Giles Coghlan, Chief Currency Analyst at HYCM

The Doctor is feeling perkier

Looking at the initial fall in commodities vs the fall in the Asian Weighted Index on coronavirus fears you can see how far commodities fell and how quickly. They fell much harder than equities.


Now that we are seeing a global rebound in equity prices with the Nasdaq making record highs yesterday and Asia in the green too it is worth looking at copper futures. You can see Copper is trying to hold that key support level marked on the weekly chart around the 2.500 handle. As momentum indicators turn positive we are expecting buyers from here, pullbacks into support and stops below recent lows. Copper has a long way to potentially recover if the market suddenly refocuses back on to pre-coronavirus optimism. Although European equity futures are in the red, and it remains to be seen whether there really is a global equity recovery, keep copper on your radar. The Doctor has a good way to recover if he shakes off his recent coronavirus hit.


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