Finally, signs of selling exhaustion are emerging in Copper markets, TDS senior commodity strategist Daniel Ghali notes.

Trend followers may be running out of dry-powder to sell

“We still expect CTA selling activity to weigh on the Red Metal in the imminent term, likely further weighing on prices even as macro funds have completely capitulated on their net length.”

“However, CTA trend followers may be running out of dry-powder to sell, barring a significant shift in the macroeconomic outlook, with the next threshold for large-scale selling activity necessitating a break below $8400/t.”

“This points to full-blown capitulation near current prices, but the set-up in aluminium markets is still the most promising, with extreme upside asymmetry for CTA positioning risks expected over the coming week.”