Copper Futures: A bounce remains on the table

Traders scaled back their open interest positions in Copper futures markets for yet another session on Friday, this time by nearly 4.4K contracts. On the other direction, volume advanced for the second session in a row, this time by around 3.6K contracts.

Copper is trying to find a bottom

Prices of the base metal extended the drop on Friday. The persistent decline in open interest amidst negative price action suggests the pullback in prices is expected to lose some impetus in the short-term horizon. However, and in light of the unabated downside, it is worth noting that there are no relevant support levels until November 2016 low in sub-2.20 levels.