22 Dec 2014
Copper extend gains on positive Chinese sentiment
FXStreet (Mumbai) - Copper futures on Comex headed higher towards the European opening bells, extending gains seen in the previous session.
The red metal now trades at USD 2.897/ pound, 0.11% higher on the day, after posting day’s high of USD 2.902/ pound. The gains in copper prices may be seen after China said on Friday that its economy was 3.4 per cent bigger last year than previously calculated, chiefly due to a more accurate counting of services and their impact on economic output. The news sent copper prices rallying as China accounts 40 per cent of the world's copper consumption and is the world’s top consumer of the red metal.
However, the upside in copper prices seems limited and temporary as worries over global oversupply continue to loom over copper markets, weighing on the prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.904 (Dec 19 High), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.864 (Dec 15 Low), below which it can extend losses to 2.844 (Dec 16 Low) levels.
The red metal now trades at USD 2.897/ pound, 0.11% higher on the day, after posting day’s high of USD 2.902/ pound. The gains in copper prices may be seen after China said on Friday that its economy was 3.4 per cent bigger last year than previously calculated, chiefly due to a more accurate counting of services and their impact on economic output. The news sent copper prices rallying as China accounts 40 per cent of the world's copper consumption and is the world’s top consumer of the red metal.
However, the upside in copper prices seems limited and temporary as worries over global oversupply continue to loom over copper markets, weighing on the prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.904 (Dec 19 High), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.864 (Dec 15 Low), below which it can extend losses to 2.844 (Dec 16 Low) levels.