The copper market has joined gold and platinum in an upward pulse on the charts this morning. Apparently comments from the Fed were just enough to leave traders and economists with a positive economic vibe, as equity markets showed some positive reaction and apparently most markets were not in need of something more proactive from the US Fed. In other words, the markets remain somewhat confident in the US recovery capacity, but perhaps the promise of assistance if needed from the Fed was enough to result in positive overall sentiment. Perhaps the markets are simply relieved that the situation in the Euro zone has drifted back onto the back burner. News that China was planning to close some out dated copper production capacity, was seemingly the result of environmental concerns, but some traders also think that decision was made in part because their economy is soft. It is also possible that copper is getting some lift from hopes of positive US initial claims and pending home sales figures later this morning. All things considered, copper is getting marginally supportive outside market action and with the May copper contract reaching up to the highest level since April 10th, it is also possible that some of the buying this morning is technical short covering. LME copper stocks overnight showed a decline of -1,050 tons and that put LME stocks down at 255,350 metric tons.

Technical Analysis

COMEX COPPER (MAY): Daily stochastics are showing positive momentum from oversold levels, which should reinforce a move higher if near term resistance is taken out. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The market setup is supportive for early gains with the close over the 1st swing resistance. The next upside target is 375.36. Short-term indicators suggest buying pullbacks today. The next area of resistance is around 373.77 and 375.36, while 1st support hits today at 368.33 and below there at 364.47.

StockMarketNews Research Team