(From Tuesday…Commentary to resume tomorrow.) Copper futures have retreated yet again today and are poised for their biggest drop in eight weeks as the strengthening US greenback may be waning the appeal of metals as an alternative investment. Copper futures are down $3.95 per pound as of this writing.
A highly recognized Industrial Metals Index has fallen three out of the last four business days after four consecutive monthly gains through last month on signs of improving domestic manufacturing demand. A spot dollar index, however, has reached a five-month high with domestic service industries expanding in July at reportedly their fastest pace since December 2005.
“With global markets nervous it might keep copper (futures) prices lower,” stated Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, sharing his insight regarding the current copper futures situation.
Copper futures trend is technically still up, but with clear signs of possibly “topping” at these levels. Two consecutive lows below the $317.20 level could change the trend to down – at a crossroads.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.