Copper: Bounces Off Year Highs
Hugo O'Neill | Mar 25, 2015 05:04AM ET
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).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.