Potential Reversal in Copper?
Yesterday’s price action in March ’26 CME Copper created what chartists call a “bearish engulfing candlestick.”
These usually signal a price reversal, especially if the market had been in a strong uptrend.
On a related note, I think that most (if not all) of the recent bullishness in copper is due to speculative fervor, rather than fundamentals (just my 2 cents).
As always, please do keep proper risk management strategies in place. – Chris
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Thanks in advance! - Chris
(Snapshot of March ’26 CME Copper Futures courtesy CQG, approximately 6AM CST 1/8/2026)
NOT FINANCIAL/TRADING ADVICE!
Really sharp call on the speculative vs fundamental distinction. The candelstick pattern here matters less than understanding why everyone piled into copper in the first place, and if those reasons still hold water. I've seen similar setups where traders get caught chasing momentum without considering whether underlying demandactually justifies the move. Risk management definitely isn't optional when speculation's running this hot.