Global commodities are taking the blood bath as Bloomberg #Commodity Index is down 8%(approx) since the mid of February 2017. So Metals and metals related stocks are taking a hit in the past few trading weeks. Copper Price often signals the strength of the global economy. Copper prices are currently trading around the pschological reference level 2.5$ and all momentum indicators are currently in a negative mode across daily, weekly and monthly timeframe.
Now copper is trading around $2.8626 & as we can see on charts , after spending more than 10 trading session , finally copper providing a downside breakout with aggressive volume. The reversal coming in copper is from 61.8% fibonacci retracement level as well as very close to the top line of long descending channel . Below $2.8398 mark we may witness more weakness in prices.
Now copper is trading around 7120 area on lme & as we can see on charts , with a top (probably false) above the tradeline copper trimmed its rally & looking for some downside move ahead. A number of doji, shooting star etc says that trend is slowing down now.As we see on charts the top placed was almost at 161.8% feb correction level & after that we have witness some negativity on indicators too.