Copper closed with gains of 0.9% around $3.65 on Friday’s New York trading session. Investors were looking at China’s clouded economy and supply concerns. Recently reported heat waves caused power grids to overheat which led some regions to ration energy among factories, leading the price of the metal higher by about 2.5% in this particular month as industry researcher Shanghai Metals Market pointed to a 24% yearly decline in copper scrap production during July added to the price rise in this month.
Copper's monthly interval seemingly found some support around the decade’s developing VWAP while the price traded below the particular level, testing potential selling pressure for the moment. The hourly interval might meet absorption behavior in the next week as the price trades above recent swing highs and prior VWAP close level might be an additional spot of resistance.
The managed money sector is quietly bearish oriented with about a -16,204 net position while short covering of about 3,878 contracts in the previous week increased the net hold position higher. Net positions are around the swing lows in the 5 Year’s range and might turn the table to the long side in the near-term perspective.
Current forecast and analyst estimates point to the downside, according to research reports and calculations while the market testing macro buyers around the lower standard deviation level of the decade’s price range. The ultra-macro view still has room to the downside as it is trading below the mean of the historical price range.
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