Copper Has More To Lose After ‘Evergrande Crunch’ – Investing.com

  • Date: 21-Sep-2021
  • Source: Investing.com
  • Sector:Oil & Gas
  • Country:Gulf
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Copper Has More To Lose After ‘Evergrande Crunch’ – Investing.com



has lost 16% from this year’s record highs, recoiling from the debt crisis at China’s property developer Evergrande as well as Beijing’s determination to use stockpiles of the metal—rather than pricey imports—to control inflation.

With prices settling at $4.115 per pound on New York’s COMEX on Monday versus the all-time peak of $4.888 on May 10, the obvious question to ask is has copper bottomed for the year? Is it a screaming buy or has it more to lose?

The answer— based on technical charts as well as China’s insidious campaign to weaken the metal’s price through fewer imports—suggest it could go deeper into red territory. 

To be sure, those wanting to build new long positions could make some profit at these levels.

But a sweeter spot below $4 awaits those willing to be more patient to see a deeper shakeout in the metal, says Sunil Kumar Dixit of SK Charting in Kolkata, India.

All charts courtesy of SK Charting

“Copper is undergoing both price and time correction,” said Dixit.



“Prices are very likely to test the 50-week Exponential Moving Average of $3.9877 and break below previous month low of $3.9590.”



COMEX copper is already down 5.4%