Copper: The Red Metal Continues To Consolidate Amid Lack of Directional Drivers
Copper prices consolidated for a second consecutive week amid a lack of directional drivers during quiet summer markets. The red metal was slightly firmer over the week due to a weaker US Dollar. Lower oil prices have raised doubt around US inflation, which has been declining over the last three consecutive months and bringing into question the likely pace of further rate hikes across the year.
Copper has been firmer over the last few weeks as traders react to reports of tightening supply. The copper market has registered a 5000-tonne deficit in March, following a 102,000 tonne surplus in February, marking a significant tightening in supply.
Demand in China, which is the largest consumer of copper, continues to fluctuate though the three-month forecast for the market has softened according to traders though demand from end-users remains firm.
The technical picture for copper remains the same. Price has stagnated over the year-to-date after the rally lost momentum following Trump’s election. To the topside, key resistance is found at the 2015 swing high along with the bearish trend line from the 2011 highs. To the downside, support is found at the December 2016 low at 2.450 with deeper support below at the mid-2016 highs.
Read more: https://www.orbex.com/blog/2017/06/weekly-commodities-wrap-six-day-rally-in-iron-strongest-move-since-december-2015/