- Analytics
- News and Tools
- Market News
- Markets expect selling exhaustion in Copper markets – TDS
Markets expect selling exhaustion in Copper markets – TDS
The Red Metal may now be nearing local lows. CTAs may still have some dry-powder to sell, but are unlikely to do so unless prices break below the $8440/t range, TDS senior commodity strategist Daniel Ghali notes.
A local low may be forming in Copper markets
“The combination of a full-blown capitulation from macro funds and the effective end to algorithmic selling activity suggest that the Red Metal may now be nearing local lows. After all, CTAs may still have some dry-powder to sell, but are unlikely to do so unless prices break below the $8440/t range.”
“While Copper would not be insulated from subsequent pain in global markets tied to a deleveraging event, vulnerabilities are mitigated as it is no longer a crowded trade. Further, our simulations of future price action reveal that CTAs may even return to the bid over the coming week, even in a range-bound trading environment.”
“A local low may now be forming in Copper markets. Still, upside asymmetries in systematic trend follower positions are most extreme in Aluminium, where we would expect large-scale buying activity to hit the tapes in the event that base metals stage a recovery.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
