Copper Futures: Recovery could be limited

In light of flash data for Copper futures markets from CME Group, open interest dropped for the fourth consecutive session on Tuesday, this time by nearly 3.2K contracts. In the same line, volume reversed three builds in a row and shrunk by around 32.1K contracts.

Copper prices remain under pressure

Prices of the base metal are extending the weekly recovery on Tuesday. However, Monday’s move up was amidst diminishing open interest and volume, noting the presence of short covering supporting the upside. That said, further gains are likely to run out of steam in the short-term horizon, therefore opening the door to the resumption of the downtrend with the potential target at 2020 lows around 2.45.