Copper prices failed to maintain this week’s rebound and have fallen back from the recent highs. Concerns over a possible “hard landing” for the Chinese economy are keeping further gains in check and have more than offset any residual support from this week’s Greek debt bailout agreement. However, recent forecasts for increased Chinese copper concentrate imports may help to improve overall sentiment for the market. In addition, a trade research group stated that the global refined copper market had a supply deficit of 119,000 tonnes during November. A slumping Dollar this morning will provide some moderate support for copper, but lukewarm US equity markets may be limiting any upside potential. LME copper stocks were 304,875 tons, down 850, their lowest level since September 2, 2009. LME Copper stocks have declined 17 of the last 20 days and are at the lowest in the past 10 readings.
COMEX COPPER (MAR): Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. A positive signal for trend short-term was given on a close over the 9-bar moving average. The daily closing price reversal down is a negative indicator for prices. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next downside objective is now at 377.02. The next area of resistance is around 386.12 and 388.51, while 1st support hits today at 380.38 and below there at 377.02.
StockMarketNews Research Team