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May 11, 2023
CME Copper dropped to $3.69, hitting its lowest point in 4 months. Later, it recovered 1 cents and is now trading at $3.7.
United States Producer Price Index didn't cause a noticeable effect even though it falls short expectations with 0.2%.
United States Producer Price Index released earlier showed a marked improvement to 0.2% from the preceding data of -0.4%, but fell short of the 0.3% figure forecast by a consensus of market analysts. Initial Jobless Claims in United States fell short of market expectations (245,000) with a reading of 264,000, continuing the decline from the previous figure of 242,000.
On the flip side, United States Crude Oil Inventories came out at 2.95 million, better than analyst estimates of -917,000 and improving upon the previous reading of -1.28 million.
Copper made an initial break below its 200 day Simple Moving Average at $3.81, a possible indication of a forthcoming negative trend. Having stamped out a session range of $3.69 to $3.86, Fibonacci-inclined Copper traders were highly concentrated around active Fibonacci support at $3.84. A crossing of the lower Bollinger Band® at $3.75 suggests further losses may follow for Copper. CME Copper broke through the $3.81 support line and dropped 12 cents below it. In contrast, the Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains.
According to technical analysis, Copper is primed to ebb lower in the short term after today's declines added further bearish momentum for the Copper.
In the meantime, negative performances are also seen in other Metals as after ending yesterday's session at $25.66, Silver lost 77.8 cents and is trading around $24.88.
CME Copper is now trading 16% below the significant high of $4.57 it set around 11 months ago.
