Copper markets continue to be choppy and noisy, as we are getting ready for a jobs report and the potential volatility.
Copper
Copper markets continue to be very noisy, to say the least, during the trading session on Wednesday, as we are hanging around just above the $6.00 level. The $6.00 level was an area of significant resistance previously and an area that has been important more than once. The $6.00 level is a large, round, psychologically significant figure and an area where we've seen a lot of action previously, so it does make quite a bit of sense that we would see some questions asked about this area.
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Ultimately, I think the copper market continues to find plenty of buyers. After all, the demand for copper is only going to increase over the years, not decrease, and of course, production is somewhat anemic at the moment. Ultimately, we need to find more supply to satiate demand.
Technical Levels and the Jobs Report Catalyst
To the upside, the market breaking above the $6.75 level opens up the possibility of an attack on $7.00. All things being equal, if we were to break down below the $6.00 level, then it could challenge the 50-day EMA, and the 50-day EMA is an indicator that a lot of people will be watching very closely.
All things being equal, the market has been using the 50-day EMA as a bit of an uptrend line, so I think that is the line in the sand for the buyers.
All things being equal, this is a market that I think will be looking for value, and with Thursday being the jobs report, I think it does make a certain amount of sense that volatility came back into the market during the last couple of days. That being said, longer-term, this is still a bullish market that's not changing anytime soon, and I continue to look at this through the prism of a bullish asset.
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