Copper Futures: Extra decline unlikely

In light of flash figures from CME Group for Copper futures markets, open interest dropped for yet another session on Monday, now by just 28 contracts. On the other hand, volume increased for the second session in a row, this time by nearly 13.7K contracts.

Copper stays capped by the 55-day SMA

The negative price action in prices of the pound of the base metal was accompanied by declining open interest, which supports the view that a deeper retracement looks unlikely in the very near term. That said, the continuation of the recovery in prices is expected to test the 55-day SMA in the $2.40 region per ounce.