Copper- Fundamental VS Technical
AvaTrade | May 26, 2015 05:07AM ET
Greece dominates headlines for the past few months and this trend could continue for the coming weeks or months if there is no viable solution in place. However, we do think that Greece will give in to the European demands to unlock the fresh credit line, but this move will not be humiliating for the Greek politicians as the prime minister has won sufficient backing from Syriza party. The reason why Greece is so important for base metals is that when we are discussing Greece, we are not talking about one country only, but the currency of the 19 nations and if the issues are not addressed then we have a serious problem in hand. Companies and manufactures will not be inclined to invest more, but to curb their investments which is not a good signal for the base metal.
As for China, the country has a very minute choice than to keep pumping the money in the economy which enables the manufactures to borrow more so that they lift their production- this represents more demand for the metal
Technical Analysis
Copper trading above its upward trend. An opportunity to trade towards the upside could be near its upward trend line or near the support zone. Alternatively, the metal may find selling pressure building near its resistance zone.
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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