Copper Sellers Shows Exhaustion

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Copper Sellers Shows Exhaustion

Copper Sellers Show Signs Of Exhaustion - Tds

Senior commodity strategies from TDS believe that the Copper market may finally get a respite from the sellers. According to them, there are now signs that show that the selling pressure on Copper has been exhausted.

It seems that the trend followers are finally running out of steam, which is good news for the Copper prices. For now, the selling activity by the CTA will continue to weigh heavily on the red metal, at least in the short-term. Also the macro funds have also surrendered their net length.

No Reason To Sell Copper

But, it seems that the trend followers may not have enough reasons to sell the Copper anymore. After all, we have seen a major shift in the outlook on a macroeconomic scale.

In order for the large-scale selling of the Copper to continue, a break below the $8400 per tonne is required. However, that will be difficult in this environment as there's still demand for Copper.

We can talk about the weakness of the demand for copper all day and even cite the weak economic activity in China. However, at the end of the day, copper is still used in many things. That's why we believe that Copper prices will recover from their historic lows, even if it is a technical correction.

That's why TDS analysts believe that a capitulation is likely to happen in the Copper prices from the current levels. They also added the Aluminum market also appears to be promising as it is also showing signs of extreme upside.

Going forward, China's economy remains key to any bullish trend in copper prices. The real estate sector of China can lead to some major demand for copper, which will cause higher prices. However, that will have to wait unless the Chinese government takes some major steps in the form of reforms, debt restructuring, and stimulus.

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