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7 Jan 2015
Copper trades close to 4-1/2 year lows
FXStreet (Mumbai) - Copper futures on Comex extended losses from the previous session and edged lower during the European session, after bearish economic data from the Euro zone and the US fuelled concerns over the health of the global economy, dampening the demand outlook for the metal.
The red metal trades now at USD 2.760/ pound, down -0.25% on the day, retracing from close to 4-1/2 year lows of 2.749 earlier in the day. Copper prices extended losses amid slowing winter demand from Chinese downstream users and a continuous increase in stockpiles in London and Shanghai warehouses. Inventories of the metal tracked by the LME gained 0.8 percent to 178,425 tons yesterday, the highest since May, while stockpiles at warehouses registered with the Shanghai Futures Exchange rose to the highest since April.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.78, above which gains could be extended to 2.82 levels. Meanwhile, support is seen at 2.74 levels, below which it can extend losses to 2.72 levels.
The red metal trades now at USD 2.760/ pound, down -0.25% on the day, retracing from close to 4-1/2 year lows of 2.749 earlier in the day. Copper prices extended losses amid slowing winter demand from Chinese downstream users and a continuous increase in stockpiles in London and Shanghai warehouses. Inventories of the metal tracked by the LME gained 0.8 percent to 178,425 tons yesterday, the highest since May, while stockpiles at warehouses registered with the Shanghai Futures Exchange rose to the highest since April.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.78, above which gains could be extended to 2.82 levels. Meanwhile, support is seen at 2.74 levels, below which it can extend losses to 2.72 levels.