As Copper Melts Down, Watch This Bounce Level
InTheMoneyStocks.com | Jul 12, 2018 02:01PM ET
Copper futures have been falling sharply lower over the past five weeks. The industrial metal topped out on June 7, 2018 at $3.31. Since that high pivot, copper futures have fallen lower by over 16.0 percent. Today, copper futures are trading around the $2.79 level.
Traders should remember, the strong U.S. Dollar will generally hurt the price of copper and most other commodities. The U.S. Dollar bottomed out earlier this year and continues to remain near nine month highs. The pattern in the $ U.S. Dollar Index (DX-U18) chart is indicating more consolidation near term, so that could be positive for copper very soon.
Traders should watch copper futures (HG-U18) around the $2.62 level. This is where the 200-week moving average is currently at. There is also a lot chart support around this level as this is where copper futures formed a basing pattern back in the first half of 2017. Some major copper equities that could benefit from a bounce are Southern Copper (NYSE:SCCO) and Freeport-McMoran (NYSE:FCX).
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