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14 Jan 2015
Copper freefall continues, lowest since August 2009
FXStreet (Mumbai) - Copper futures on Comex dives deeper in to red in the Asian morning, and posted a new five and a half year low at 2.434 levels as investors turned away from riskier assets amid global markets turmoil.
The red metal trades now at USD 2.489/ pound, down -4.39% on the day, having posted fresh five and a half year low an hour ago. Copper known as the bellwether of the health of the global economy slumped amid looming concerns over global growth outlook after World Bank cut its 2015 global growth forecasts to 3% from 3.4%. Further, expectations of increasing supply after mining companies may step up production on reduced emerging costs also weighed on the copper prices. Copper prices are expected to remain bearish as technical selling continues after the red metal breached the crucial psychological level - USD 6000 on the LME.
Copper prices are expected to remain exposed to more downside risk ahead of the Chinese Lunar New Year in February, a time when demand traditionally dries up as manufacturing levels slow for the week-long holiday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.677 (5-DMA), above which gains could be extended to 2.72 levels. Meanwhile, support is seen at 2.32 levels, below which it can extend losses to 2.135 levels.
The red metal trades now at USD 2.489/ pound, down -4.39% on the day, having posted fresh five and a half year low an hour ago. Copper known as the bellwether of the health of the global economy slumped amid looming concerns over global growth outlook after World Bank cut its 2015 global growth forecasts to 3% from 3.4%. Further, expectations of increasing supply after mining companies may step up production on reduced emerging costs also weighed on the copper prices. Copper prices are expected to remain bearish as technical selling continues after the red metal breached the crucial psychological level - USD 6000 on the LME.
Copper prices are expected to remain exposed to more downside risk ahead of the Chinese Lunar New Year in February, a time when demand traditionally dries up as manufacturing levels slow for the week-long holiday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.677 (5-DMA), above which gains could be extended to 2.72 levels. Meanwhile, support is seen at 2.32 levels, below which it can extend losses to 2.135 levels.