Copper cools off

Copper ends a good week on a bad note as profit taking sets in.

Copper sheeting
Source: Bloomberg

Copper is trading at 326 cents per pound, but even though the red metal has lost ground today it is up over 3% this week on the back of strong manufacturing figures from China in both the official and HSBC reports. In recent months copper has found it difficult to break though the 319 cents per pound mark, but it smashed through it this week and now continues to make advances. Copper is now trading above its 50-, 100- and 200-day moving average, which puts it in a good position for next week.

China will announce CPI and PPI figures on Wednesday. If the manufacturing figures are anything to go by I suspect the cost living and production will be on the rise. Copper is receiving support at 323 cents per pound; if we take out 328 it could target 330.

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