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Copper: Bounces Off Year Highs

ByHugo O'Neill
Published 03/25/2015, 05:04 AM
Updated 07/09/2023, 06:32 AM


In the beginning of March copper prices had been consolidating, as China's economic woes meant that it was in less demand for construction. But it started to rally last Friday, as investors rushed for the metal after the Federal Reserve produced a statement that was more dovish than expected.

Fundamentals in China, which constitute nearly half the global copper trade, also appear to be fading. Yesterday market sentiment was hit by China week preliminary HSBC (LONDON:HSBA) Manufacturing (PMI) in March falling below the 50 mark reaching 49.2, a reading under 50 shows economy contraction.

The commodity since the start of March rose 3.63% and is in a recovery phase trading above the 10-day moving average. On yesterday session copper fell on typically digestion day and close near the low of the day, making an inside day. The Stochastic is showing an overbought market and is signaling a bearish momentum.

Expecting downward move to a daily key level at 269.85 on a break below previous day low at 277.50 (scenario 1).

Copper Daily Chart

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