Copper: A breakout?

Darkening macroeconomic sentiment, driven by the U.S-China trade war, weighed down on copper prices and led to a 17.6% fall (from a high of $7,331/t on the 7th June to $6,040/t on the 19th July). Since then, the metal has traded in a range of $5750-$6380/t as bullish fundamentals have wrestled with the US-China trade war. In recent weeks, the metal has started to test the upper bound of this range. Our view, which we detail in this report , is that copper prices are heading higher from the current levels. Prices should benefit for a weaker dollar, the impact of TC/RCs and to some extent the situation in China.