In light of flash figures for Copper futures markets from CME Group, investors scaled back their open interest positions by almost 2.5K contracts. It is worth mentioning that open interest has been rising since March 5th. In the same direction, volume resumed the downside and went down by nearly 16.5K contracts.
Copper could re-visit $2.00/pound and below
The weekly recovery in prices of the pound of the base metal stalled around $2.25 so far. Wednesday’s small uptick coupled with shrinking open interest and volume hints at the likeliness that prices could have met a strong resistance and are now aiming to correct lower. Against this backdrop, the door remains open for a potential re-visit of the YTD lows in the sub-$2.00 area per pound.