From July till mid-September, COMEX copper was falling in a channelised manner, when it broke out from the channel on the upside. A larger picture shows that the red metal has formed a triangular pattern. The September rally faced resistance near the upper end of the pattern.Therefore, the base metal has retreated toward the lower end. Unless the swing low of $2.064 breaks on a closing basis, copper can advance toward the upper end of the triangular pattern ie $2.22-$2.24
LME Copper prices are trading flat today at $4642.5 per tonne while MCX copper prices are trading flat at Rs.311.1 per kg. Price movement is muted but the metal is near one month lows as the efforts by Chinese government to arrest the property market bubble by way of restrictions could hamper the demand in the main consumer nation.
Copper market balance swayed to surplus in July – ICSG.
* LME Copper stocks down by 2 percent on Friday.