Like a host of physical commodity markets, copper is showing definitively positive action in the early going today and that appears to be the result of a number of bullish angles. Primarily the copper market is being lifted by talk of possible easing in China, but it also seems as if the trade is generally anticipating a positive outcome on the upcoming Greek debt swap event. Copper is also benefiting from favorable currency market action and apparently because of a “risk-on” vibe that in turn seems to be the result of noted gains in the equity markets. It is also possible that copper is deriving some support from another favorable Chinese copper demand prediction, from a Chinese copper mining executive overnight. Other elements that might be serving to lift copper and physical commodity prices this morning, is the Brazilian interest rate cut overnight of 75 basis points. While some traders will suggest that copper is already buying the rumor of the Greek event today, copper is also likely
to take a lot of direction from the US equity markets. Unfortunately for the bull camp, US initial claims this morning are expected to post a slight rise, but the attention of the markets might be directed toward the Euro zone and not toward the weekly claims results. LME copper stocks overnight declined by 875 tons to stand at only 280,025 tons.
COMEX COPPER (MAR): Declining momentum studies in the neutral zone will tend to reinforce lower price action. The close below the 9-day moving average is a negative short-term indicator for trend. The daily closing price reversal up is a positive indicator that could support higher prices. The close over the pivot swing is a somewhat positive setup. The next downside objective is 368.80. The next area of resistance is around 380.25 and 382.40, while 1st support hits today at 373.45 and below there at 368.80.
StockMarketNews Research Team