Copper Futures: Rebound seen limited

Open interest in Copper futures markets extended the downtrend for yet another session on Tuesday, this time dropping by nearly 5.3K contracts in light of advanced readings from CME Group. Volume, on the other hand, reversed three consecutive pullbacks and rose by almost 8.4K contracts.

Upside stays capped around 2.6250

Prices of the pound of the base metal are finally seeing some light at the end of the tunnel bolstered by the better mood in the risk complex. However, Tuesday’s uptick in prices was on the back of shrinking open interest, noting that extra gains still look limited. On the latter, the key hurdle remains at the 2.6250 region, although a move to this area is not favoured in the short-term horizon.