Finally, signs of exhaustion selling are emerging in copper markets, notes Daniel Ghali, senior commodity strategist at TDS.
Trend followers may be running out of dry powder to sell
“We still expect CTA selling activity to weigh on the Red Metal in the near term, likely weighing further on prices even as macroeconomic backgrounds have fully capitulated on their net length.”
“However, CTA trend followers may be running out of dry powder to sell unless there is a significant change in the macroeconomic outlook, with the next threshold for large-scale selling activity needing a break below $8,400/t.”
“This points to a full capitulation near current prices, but the setup in aluminium markets remains the most promising, with extreme upside asymmetry for CTA positioning risks expected over the coming week.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
