The Catalyst Sending Copper Higher

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Copper futures prices rallied by more than 4% in the last week’s trade, and the metal is now
approaching the year-to-date breakeven level. The question is: What is behind this rally?


Recent catalysts:
CPI and PPI came in well above estimates last week, sending interest rate yields higher. Industrial
production numbers for the month of January contracted by -0.1% vs +0.1% expected. One would
expect that both catalysts would have been negative for the industrial metal.
However, interesting developments in the manufacturing sector showed strength, especially the Philly
Fed Manufacturing Index, which showed improving conditions for the first time since August 2023. PPI
for the month of January was equally surprising, showing producer prices increased more than
estimates.
Core PPI came in at +0.5% vs. +0.1% expected. A notable finding from the PPI report was that the final
demand for construction, both government and private, was positive. This suggests a potential trough in
construction, typically bullish for industrial metals such as copper.
Technicals:
Copper is currently trading between a wedge, and the recent break and close above the 50 and 200 Day
EMAs suggest that we will likely retest the high end of the wedge. Breaking and closing above 3.95
would confirm an upside breakout.


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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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