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29 Dec 2014
Comex Copper rebounds from fresh 4-1/2 year lows
FXStreet (Mumbai) - Copper futures on Comex rebounded sharply from fresh four and a half year lows of 2.755 levels reached in early Asian morning, as traders resorted to cover short positions.
The red metal now trades at USD 2.837/ pound, 0.79% higher on the day, after posting a new 4-1/2 year low earlier in the day. Copper prices extended losses from previous session and slumped today the Chinese economy has continued to struggle, despite a series of stimulus measures taken in previous months. China’s industrial profits dropped 4.2% in November to 676.12 billion Yuan (USD 108.85 billion), the most in two years. This was driven primarily by weakness in coal mining, and oil and gas industries.
Moreover, indicating sluggish demand for the red metal, copper inventories stored in the Shanghai Futures Exchange's affiliated warehouses jumped some 14 percent from a week ago to hit a near-five-month high of 105,522 tonnes on Friday.
China is the world’s top consumer of the industrial metal.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.842 (Nov 30 High), above which gains could be extended to 2.862 (Dec 26 High) levels. Meanwhile, support is seen at 2.779 (Nov 30 Low) levels, below which it can extend losses to 2.725 (2010 Low) levels.
The red metal now trades at USD 2.837/ pound, 0.79% higher on the day, after posting a new 4-1/2 year low earlier in the day. Copper prices extended losses from previous session and slumped today the Chinese economy has continued to struggle, despite a series of stimulus measures taken in previous months. China’s industrial profits dropped 4.2% in November to 676.12 billion Yuan (USD 108.85 billion), the most in two years. This was driven primarily by weakness in coal mining, and oil and gas industries.
Moreover, indicating sluggish demand for the red metal, copper inventories stored in the Shanghai Futures Exchange's affiliated warehouses jumped some 14 percent from a week ago to hit a near-five-month high of 105,522 tonnes on Friday.
China is the world’s top consumer of the industrial metal.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.842 (Nov 30 High), above which gains could be extended to 2.862 (Dec 26 High) levels. Meanwhile, support is seen at 2.779 (Nov 30 Low) levels, below which it can extend losses to 2.725 (2010 Low) levels.