Copper prices rebounded this week and the continuous contract (HG/) returned to a relative strength buy signal.
Remember, these are technical comments only. Just as you must be aware of fundamental data for the stocks we recommend based on technical criteria in the report, so too must you be aware of important data regarding delivery, market moving government releases, and other factors that may influence commodity pricing. We try to limit our technical comments to the most actively traded contracts in advance of delivery, but some contracts trade actively right up to delivery while others taper off well in advance. Be sure you check your dates before trading these contracts. For questions regarding this section or additional coverage of commodities email james.west@nasdaq.com.
Data represented in the table below is through 8/27/2024:
Broad Market Commodities Report
Portfolio View - Commodity Indices
| Symbol | Name | Price | PnF Trend | RS Signal | RS Col. | 200 Day MA | Weekly Mom |
|---|---|---|---|---|---|---|---|
| CL/ | Crude Oil Continuous | 75.53 | Negative | Buy | X | 77.74 | - 6W |
| DBLCIX | Deutsche Bank Liquid Commodities Index | 461.19 | Negative | Sell | O | 476.32 | + 1W |
| DWACOMMOD | DWA Continuous Commodity Index | 853.44 | Positive | Buy | O | 836.87 | + 1W |
| GC/ | Gold Continuous | 2517.70 | Positive | Buy | X | 2217.78 | + 8W |
| HG/ | Copper Continuous | 4.24 | Negative | Buy | X | 4.14 | + 1W |
| ZG/ | Corn (Electronic Day Session) Continuous | 367.25 | Negative | Sell | O | 435.35 | - 13W |
Weekly Commodities Video (2:39)
After a sharp drop from all-time highs, the copper continuous contract (HG/) returned to a Point & Figure buy signal this week at $4.20 – ending its longest streak of consecutive sell signals since July 2022. Technically speaking, the bounce was not a surprise. Earlier this month we highlighted major support in the $4 vicinity, an extremely stretched OBOS reading, and a steep futures curve.
If copper prices remained in freefall, it would have become increasingly concerning for the economy (likewise with crude oil). So, a rebound is nice to see from that perspective too.
Despite the selloff, copper now sits just beneath the middle of its ten-week trading band which indicates near-term normalized prices. Substantial support is offered at $3.92 while the first level of resistance is distant, currently at around $4.60, suggesting the potential for a bit more breathing room.
