Copper futures continue to move higher and short-term support confirms validity

In terms of the market, Shanghai electrolytic copper spot contracts reported a premium of 50-100 yuan / ton, a flat water copper trading price of 46400 yuan / ton - 46530 yuan / ton, and a premium copper trading price of 46430 yuan / ton - 46560 yuan / ton
.
The bullish power of the nonferrous metal market has returned obviously, and the Shanghai copper has risen to 46400 yuan / ton of the first line, but the stalemate and tug of war in the spot market has further continued, and the price of flat water copper has good resistance to decline, and the transaction is still biased towards flat water copper
.
During the week, copper prices gradually recovered, but the downstream buying volume was decreasing day by day, trade activity was limited, and it was difficult for supply and demand sides to change, and the transaction was in a deadlock
.
The import window opened for profits during the week, and the market waited for imported copper to enter the market to increase, thus breaking the existing deadlock
.

From a macro perspective, the three major macro disturbance events at the end of July landed one after another
.
First, the Politburo Economic Meeting in July was held as scheduled, which was a marked change from the Politburo meeting in April, and did not continue to mention "structural deleveraging", indicating that the focus of the second half of this year will return to stable growth
.

For copper, there are signs of stabilizing in terminal demand, and the meeting once again reiterated that expanding consumption is the focus, which will be positive
for copper terminal consumption.
While the Fed cut its benchmark interest rate by 25 basis points as expected, Powell's hawkish comments forced risk assets to fall
in tandem.
The trade negotiations between the Sino-US trade delegation in Shanghai have been temporarily concluded, and judging from the statements of both sides, no substantial progress
has been made.
And the United States said that it will impose tariffs on Chinese imports again, and trade frictions
have escalated again.

In terms of news, Chile's national copper commission (Cochilco) said that in the first half of 2019, Chile's national company Codelco copper production fell 12.
1% year-on-year to 769,400 tons; Production at BHP's Escondida copper mine, the world's largest copper mine, fell 12% year-on-year to 569,900 tonnes; Anglo American Resources and Glencore's joint venture, the Collahuasi copper mine in northern Chile, produced 254,700 tonnes, down 2.
8%
year-on-year.
The global supply tightness pattern continues, and spot copper prices are expected to rise
slightly.

Shanghai copper stabilized around 45800 and rebounded sideways, rising slightly this week, with short-term support at 45800 confirming validity
.
Operationally, you can position long orders below 46400 and stop loss below 46200 points
.