Is the Copper Market About to Rebound? Expert Analysis by TDS Strategist
In a recent report, TDS senior commodity strategist Daniel Ghali highlights signs of selling exhaustion in Copper markets. According to Ghali, trend followers may be running out of dry-powder to sell, which could lead to a potential rebound in prices.
“We still expect CTA selling activity to weigh on the Red Metal in the imminent term, likely further weighing on prices even as macro funds have completely capitulated on their net length,” Ghali explains. “However, CTA trend followers may be running out of dry-powder to sell, barring a significant shift in the macroeconomic outlook, with the next threshold for large-scale selling activity necessitating a break below $8400/t.”
Ghali points out that while full-blown capitulation may be near current prices, the set-up in aluminium markets is showing promise, with extreme upside potential for CTA positioning risks expected in the coming week.
Analysis:
– Signs of selling exhaustion in Copper markets
– Potential rebound in prices as trend followers run out of dry-powder
– Aluminium markets showing promise with upside potential
– CTA positioning risks expected to increase in the coming week
Overall, this analysis suggests that the Copper market may be on the verge of a rebound, with potential opportunities for investors to capitalize on the situation. Keep an eye on price movements and market trends to make informed decisions about your investments.