CoT positioning in copper futures became very hot towards the end of last year with the Trump "reflation trade" taking hold of investors' imaginations:
However, over the last couple of months copper futures positioning has moved more into balance as price has oscillated near $2.60/lb:
This is bull market action. Bull markets are characterized by high speculative net length and producer hedging, which is exactly what we have in copper.
This morning copper is surging by more than 2% on the back of a strong overnight trading session:
Zooming out to the weekly time frame we can see the significance of the $2.70 level and how a weekly close above that level could signal that the next leg higher is beginning after a bullish multi-month consolidation:
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