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The copper bulls have lost their edge! In fact, in the wake of a slightly bearish weekly Shanghai copper stocks report from last week and a minor “gain” in LME copper daily stocks, it would seem as if the fundamental outlook for copper is patently bearish into the US opening today. While we would not make a big deal out of a single day rise in LME copper stocks, that event does seem to add to the bear’s case this morning. With the additional pressure created by the slide in global equity prices overnight and the rising US Dollar, one should not rule out a quick slide back to the June low of $2.1235. As in the stock market, we don’t see the prospect of massive panic style liquidation in copper, but we do think that the bear camp is indeed set to control prices for the better part of the coming week. While some brokerage firms remain up beat on the longer term view toward copper prices, the near term outlook should belong to the bear camp. Initial targeting today is seen at $2.2005, with another key chart point seen down at $2.1740 basis the September copper contract.
