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6 Feb 2015
Rising inventories keep Copper in red
FXStreet (Mumbai) - Copper prices on Comex trades slightly lower today, extending losses from the previous session, however was set for its biggest weekly gain in more than two years ahead of US NFP data.
LME stocks at 13-year High
The red metal trades at 2.588 levels, having previously posted day’s low at 2.582 and day’s high at 2.615 levels. Copper prices remains pressured as the metal’s inventories rose yet another day, adding to signs of a glut in a market that continues to grip the copper markets.
Inventories at LME warehouse jumped 34500 metric tons, or 13%, to 284,600 tons yesterday, the highest in almost a year and sits at 13-year high.
Copper prices are expected to continue its downtrend as less demand from China, the world's biggest user of copper, is leading to excess supplies as economic activity cools-off across the all the sectors. Moreover, manufacturers and other buyers often slow purchases of the metal this time of year before the Lunar New Year holidays.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.618 levels. Meanwhile, support is seen at 2.52 levels, below which it can extend losses to 2.50 levels.
LME stocks at 13-year High
The red metal trades at 2.588 levels, having previously posted day’s low at 2.582 and day’s high at 2.615 levels. Copper prices remains pressured as the metal’s inventories rose yet another day, adding to signs of a glut in a market that continues to grip the copper markets.
Inventories at LME warehouse jumped 34500 metric tons, or 13%, to 284,600 tons yesterday, the highest in almost a year and sits at 13-year high.
Copper prices are expected to continue its downtrend as less demand from China, the world's biggest user of copper, is leading to excess supplies as economic activity cools-off across the all the sectors. Moreover, manufacturers and other buyers often slow purchases of the metal this time of year before the Lunar New Year holidays.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.618 levels. Meanwhile, support is seen at 2.52 levels, below which it can extend losses to 2.50 levels.