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29 Dec 2014
Comex Copper erases gains, nears 4-1/2 year lows
FXStreet (Mumbai) - Copper futures on Comex reversed gains seen in the Asian session and continues trading close to fresh four and a half year lows of 2.755 levels reached earlier today.
The red metal now trades at USD 2.81/ pound, -0.11% lower on the day, after posting a new 4-1/2 year low earlier in the day. Copper prices failed to garner support from Chinese Central Bank’s announcement of loosening its liquidity conditions as one of the measures to spur lending, thereby supporting growth.
Meanwhile, bearish Chinese industrial profits data and oversupply worries continue to drag copper prices lower.
China’s industrial profits dropped 4.2% in November to 676.12 billion Yuan (USD 108.85 billion), the most in two years, mainly driven by weakness in coal mining, and oil and gas industries. Copper inventories stored in the Shanghai Futures Exchange's affiliated warehouses jumped some 14 percent from a week ago to hit a near-five-month high of 105,522 tonnes on Friday. China is the world’s top consumer of the industrial metal.
Moreover, traders are expected to remain wary ahead of China’s manufacturing activity data due out on Wednesday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.842 (Nov 30 High), above which gains could be extended to 2.862 (Dec 26 High) levels. Meanwhile, support is seen at 2.779 (Nov 30 Low) levels, below which it can extend losses to 2.725 (2010 Low) levels.
The red metal now trades at USD 2.81/ pound, -0.11% lower on the day, after posting a new 4-1/2 year low earlier in the day. Copper prices failed to garner support from Chinese Central Bank’s announcement of loosening its liquidity conditions as one of the measures to spur lending, thereby supporting growth.
Meanwhile, bearish Chinese industrial profits data and oversupply worries continue to drag copper prices lower.
China’s industrial profits dropped 4.2% in November to 676.12 billion Yuan (USD 108.85 billion), the most in two years, mainly driven by weakness in coal mining, and oil and gas industries. Copper inventories stored in the Shanghai Futures Exchange's affiliated warehouses jumped some 14 percent from a week ago to hit a near-five-month high of 105,522 tonnes on Friday. China is the world’s top consumer of the industrial metal.
Moreover, traders are expected to remain wary ahead of China’s manufacturing activity data due out on Wednesday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.842 (Nov 30 High), above which gains could be extended to 2.862 (Dec 26 High) levels. Meanwhile, support is seen at 2.779 (Nov 30 Low) levels, below which it can extend losses to 2.725 (2010 Low) levels.