Copper Futures: There is still scope for a bounce

Open interest in Copper futures markets extended the downtrend on Wednesday, this time shrinking by just 410 contracts. In the same direction, volume shrunk for the second straight day, now by nearly 21.8K contracts.

Copper remains under pressure

Prices of the base metal are navigating the area of yearly lows around 2.45. Declining open interest and volume combined with negative price action fuels the idea that a rebound could be in the offing in the short-term horizon. That said, interim resistance emerges at 2.5460, where sits a Fibo retracement (of the 2020 drop).