Fundamental Analysis
Industrial metals are under pressure once again after the data in china confirmed that industrial profit have slummed further and this has made the investors cautious these companies will take further measures to cut production which will impact the underlying metals. The market moving data, the Caixin, manufacturing managers PMI will be the major focus for the markets tomorrow and a weak number here will once again rubber stamp the optimism that the PBOC will beef up its fiscal stimulus as we embark towards the final quarter and this could support the metal price such as copper and aluminum.
Technical Analysis
Copper is trading firmly below its downward trend line on a daily time frame. The volatility is low as the price is trading within the Bollinger band and as long as the price is trading within this, the volatility will remain subdued. The RSI and MACD are trading inline with the price action which means that the bias remains towards the downside.
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam