As the world’s leading investment manager and financial market journalist, I have identified a crucial trend in the Copper market that could have a significant impact on your portfolio. According to TDS senior commodity strategist Daniel Ghali, we can expect notable CTA buying activity in Copper markets in the upcoming session.
CTA buying activity in Copper to slow down
Ghali points out that CTA trend followers are reaching their limits, and a substantial rally is needed to push Copper prices back towards the $9,800/t mark. The current setup indicates a downside bias, with the possibility of large-scale selling activity if a downtape occurs in the coming week.
On the other hand, the Aluminium market presents a more favorable outlook, with continued CTA buying activity expected in an uptape. However, the setup for algorithmic flows in aluminium is now more balanced.
Analysis Breakdown:
- Copper Market: CTA buying activity is expected to slow down, with a potential for large-scale selling if prices decline further.
- Aluminium Market: CTA buying activity remains strong in an uptape, but algorithmic flows are now more symmetric.
Understanding these market trends is crucial for making informed investment decisions. Stay informed and stay ahead of the curve in the ever-changing world of financial markets.