Copper prices on Comex extended its recent upbeat momentum on Monday and rallied to fresh 10-day highs at 2.690 levels, before meeting fresh supply to now trade around 2.670 region.
The red metal, initially, cheered upbeat China’s home prices data for the month of February, which arrived at +11.8% y/y & 0.3% m/m. Subsequently, the upside lost legs as the bulls ran into resistances just shy of 2.70 mark.
The latest leg down in copper is also on the back of markets digesting the outcome if the G20 meeting, while reports of BHP Billiton's Escondida calling for fresh talks management to end a 39-day strike "manipulative", also added to the renewed selling in copper.
Also, in an evidence of the investors’ losing confidence in the commodity, hedge funds and money managers trimmed their bullish position in copper by 4,700 lots to 52,449 lots, the lowest since early November, the US CFTC showed on Friday.
The resistances are seen between $2.6975 to $2.7300. On the downside, the major retracement zone is $2.6460 to $2.6010.