After making new highs in the beginning of this year, a correction is intact on copper. Traders should focus on this corrective consolidation (visible clearly in weekly chart) to capture the next impulsive movement when price action expands out of the range. The correction we see now is a result of earlier upswing from 1.900 – 2.700. The movement we saw earlier indicates a change in market sentiment. It’s important to keep in mind that copper was in a long-term bear trend from 2012 – 2015. It ended with a slight gain on 2016. Performance of the copper depends on global growth expectations.
So speculators and traders must pay attention to global economic performance to gauge the supply and demand of copper. From the perspective of Price action, Traders must focus on the corrective consolidation (pullback) on weekly chart and take trades according to market behavior.
