High Grade Copper – Bearish Signal

Copper is usually one of the most expensive commodities to trade. Specially if compering it to other popular commodities. Its price is considerably cheap, currently trading at $3.71 and it offer a good trading range.

Copper is among the most important industrial metals and is used in many application such cables, equipment, automobile parts, white goods appliances water pipes etc. The main factor influencing copper prices besides demand and supply, is mainly the level of inventories and how many contract  are currently been placed along with industrial production from China to USA.

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Having access to copper data, such the number of contract, stockpile quantity are quite difficult to obtain. It is more difficult to speculate on copper and current global events than any other commodities, such oil and gold.

The  three month contract is signalling a good bearish signal to trade. Since 20 of December the price of copper increased from $3.52 to $3.75. Back then, there was speculation that stockpiles were increasing, therefore prompting an evident slow down in industrial production.

Yesterday The price was bolstered by positive manufacturing data from the US and China. Today the price has fallen indicating that in fact copper is going to lose some ground.

It could be expected the high grade copper price could fall as low $3.64. Nevertheless, copper  like other commodities, shouldn’t be hold for long periods of times. The current sell signal will probably last till mid next week when new copper data is release to the market.

copper_technical_analysis

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