~*~Mining and Metals Du Jour~*~

[JD400]

Column: Funds stampede into copper as price breaks higher

Reuters | March 27, 2024 | 8:54 am Intelligence Markets China Europe Copper

with MMGYS Soundtrack

"It ain't a easy job"

Clearly, plenty of fund managers are buying into the change of narrative but whether others will join them depends on whether copper can consolidate its chart gains.

The most recent COTRs capture the build in long positions just before copper peaked above $9,000 per ton. Much of the money entering the market was likely reacting to the chart break and the resulting upwards price momentum.

LME three-month copper has since retraced all the way to a current $8,860 per ton, a key technical level that acted as resistance in the previous year-long trading range and which, bulls hope, will now provide support for a new higher range.

If that resistance-turned-support thesis holds, heavier-weight money may well follow the shorter-term technical funds into the market. If, however, copper can’t hold its gains and falls back into the old range, some of its new fund friends may disappear as quickly as they came.

Check out the full read with charts here
https://www.mining.com/web/column-funds-stampede-into-copper-as-price-breaks-higher/