- 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.
- 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