Excellent copper reaction from support that we had indicated in the previous post (read the report here) at $ 5800 (area of the trendline from by the lows of August 2019- zone of moving averages of different time horizons).
COPPER 3 MONTH $ DAILY
Prices move upwards now directed towards the first resistance fixed in the $5900 zone. At the weekly front (wider time horizon) the clear positive divergence (already reported for some time) suggests a slowdown in the descent valid from the highs of 2018.
In this context we do not exclude potential returns to $5900 in the first instance, in the direction of the next target at $6000 (only beyond this level you will have first real confirmation of further rises in the medium term).
COPPER 3 MONTH $ WEEKLY
On the COTR side (Commitments of Traders Reports), a report published weekly by the London Metal Exchange (every Tuesday) and summarizing all the positions (both buying and selling) held by the different classes of investors, it can be seen that in the last week, ending on 29 November, speculators (Investment Firms/Credit institutions-Investment Funds-Other Financial Institutions) have increased the long positions (+2.01%) while they liquidated those in short positions (-1.17%), with a net balance of +43.362 lots (+22.89% compared to last week). This indicates a good positioning of speculators on the purchase side, probably reinforcing the current price increase.
Summary Weekly Table C.O.T.
Lme Copper – Chart Net Positions Speculator VS Net Positions Commercial