Copper Futures: Recovery could extend further

CME Group’s advanced figures for Copper futures markets showed traders scaled back their open interest positions for the third session in a row on Monday this time by almost 1.5K contracts. On the other hand, volume rose for the third consecutive session, now by around 4.2K contracts.

Copper still capped by 2.6250

After bottoming out in fresh 2020 lows around 2.45, prices of the base metal managed to mitigate some losses and rebound from lows. The recent downtrend in prices was amidst shrinking open interest, showing that momentum could be fading. The firm uptrend in volume, however, could play in favour of some consolidation or even trigger another bout of weakness.