Bullish exhaustion leads to pullback Copper prices remain optimistic in the medium and long term

LME copper is expected to rise 9% this month and 27% so far in 2021, helped by optimism about the prospects for a rapid global economic recovery and tighter
supply.

The Chinese market will be closed from May 3 to 5 due to the Labor Day holiday
.
The London market will be closed on May 3 due to a bank holiday
.

The dollar's rally, extending gains following the release of upbeat U.
S.
personal income and spending data, has made dollar-denominated commodities more expensive
for buyers in other currencies.

China's National Bureau of Statistics and the Federation of Logistics and Purchasing (CFLP) jointly released that the official manufacturing purchasing managers' index (PMI), a leading macroeconomic indicator, fell to 51.
1 in April, below the median estimate of 51.
7
in a Reuters survey.

At present, the entire colored sector is still in a macro positive mood, after the Federal Reserve announced that interest rates and bond purchase plans remained unchanged, bulls once again overwhelmed the bears, and the market also believes that the probability of raising interest rates in the short term is almost 0
.

In terms of supply and demand, the Congressional Mining Committee in Chile, a major copper exporter, approved a bill that would impose a 15 percent tax on sales generated by copper prices between $2 and $2.
50 per pound, and a 75 percent marginal tax rate
on copper above $4.
The bill, which is still under discussion, would generate $7 billion a month in revenue for Chile and may have limited impact on international copper processors
.
What bulls need to be wary of now may not be the shift in actual macroeconomic data, but the sharp correction
caused by the exhaustion of bulls.
Strategically, if the copper price falls below 71,000, investors can consider placing long orders, and remain optimistic about copper
in the medium and long term.