Buying the depletion in Copper is now imminent – ​​TDS

We expect the notable CTA buying activity in the copper markets this session to set the stage for subsequent buying exhaustion, notes TDS Senior Commodity Strategist Daniel Ghali.

CTA buying activity in Copper will slow

“CTA trend followers will now be drawn without substantial upside to propel copper prices back towards the $9,800/t mark. The flow setup is already skewed asymmetrically to the downside, but we believe only a large discount could trigger large-scale selling activity in the coming week.”

“The setup in the aluminum markets remains more favorable should the complex continue to recover, with continued CTA buying activity in an uptape expected. That said, the setup for algo streams in aluminum is now symmetrical.”