Trump tweets on trade keep downside pressures on Base Metals

Intermediate
  • Over the past week in numerous articles we have highlighted the impact of growing trade negotiation tensions on equity markets here and Forex markets here, but today we will take a look at the negative impact on Base Metals.
  • Friday saw some respite from the negativity with some positive soundings after the most recent talks, but further tweets at the weekend from US President Trump have again fuelled the fire of market unease.
  • Base Metals markets have continued to react negatively to the impact of further tariffs and in today’s report, we focus in on Copper.

LME Copper intermediate-term bear shift reinforced

A rebound failure Friday back from new 6194 resistance, leaves negative forces from Thursday’s surrender of key 6085, which reinforced the early May plunge through the prior key 6295 support, to keep risks lower for Monday.

The Thursday push below 6085 set an intermediate-term bear trend.

For Today:

  • We see a downside bias for 6058.5/50; break here aims for 6000/5988.5, then 6051/50.
  • But above 6145/50 quickly opens risk towards 6194, maybe 6227.

Intermediate-term Range Breakout Parameters: Range seen as 6085 to 6608.5.

  • Upside Risks: Above 6608.5 sets a bull trend to aim for 6692.5, 6837.5 and 7002.5.
  • Downside Risks: Below 6085 sees a bear trend to target 5897/77.5, 5725 and 5500.

Daily Copper Chart

copper chart

Comments on this analysis


Latest News

Gold Chart
Golden Breakout: Potential for 1,486 for spot gold

We upgrade our neutral conviction on GOLD, mentioned in our prior post, to buy. Yesterday saw a solid 1.3% rise in XAUUSD on the back of a weaker USD, Middle East tensions and Ray Dalio comments. The precious metal broke above key 1,438.63 resistance and a consolidation pattern. A close near the top reinforces bull … Continued

GBPUSD Daily Chart
Elliott wave Analysis: GBPUSD On A Bearish Ride

Hello fellow traders! GBPUSD is looking bearish and can now be unfolding final stages of a sub-wave 3) of blue wave 1. We are observing minor leg 5 of 3) in progress, with possible support, and a turn into a corrective wave 4) around the Fibonacci ratio of 261.8 (1.235/1.223 region). GBPUSD, Daily On the … Continued

Forex News Category
Will Fed Easing Turn Out Like ’95 or ‘07?

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality. … Continued

Gold Futures
Gold Getting a Boost as Fed Expresses Concern

As the Fed indicate rate cuts are coming gold will keep rising over the summer  There is a disconnect between asset price inflation and the real economy  Earnings will be flat or disappointing and too much debt has little or negative yield  I last looked at Gold on May 26, 2019 when I called for … Continued


Forex Brokers in your location