Comex copper futures for July delivery on Wednesday morning were trading solidly higher on short covering in a market that is still technically bearish. July copper prices are in a two-month-old downtrend on the daily chart and earlier this week hit a fresh eight-month low of $2.72 a pound. For the bulls to begin to regain some fresh upside technical momentum to begin to suggest a market low is in place and that a price uptrend can be established, they will have to produce multiple daily closes above major resistance at $3.00 a pound. The bears remain in overall technical control of copper.
A close below strong technical support at this week's low of $2.72 in July copper would produce more serious chart damage and suggest a downside target of $2.50 a pound for nearby futures. The present significantly bearish technical posture for copper is also a bearish shot across the bow for all raw commodity markets. Copper is a red industrial metal that is very important for commercial and residential construction worldwide. A down-trending copper market suggests a weak worldwide construction sector. Stay tuned! Jim Wyckoff