Copper Futures: Room for a move lower

Traders prolonged the downtrend in open interest on Monday, trimming their positions by almost 4K contracts in light of flash data from CME Group. On the other hand, volume rose by nearly 6.3K contracts following three consecutive pullbacks.

Copper met resistance at the 55-day SMA

Prices of the pound of the base metal rose to new multi-week highs on Monday, meeting strong hurdle in the $2.38 region, coincident with the 55-day SMA. However, declining open interest could undermine further gains, prompting instead a correction lower to, potentially, last week’s low around $2.15.