Copper Futures 10 Nov 2010
Yesterday’s surge in the December copper futures contract saw the base metal break above the 400 price point before closing marginally below the 405 level as a wide spread up candle with a small wick to the lower body. Following last week’s recovery and hold above all three moving averages, the bullish trend for copper has been firmly reinstated once again this week, as the commodity continues to climb higher as the technical and fundamental pictures combine to produce an almost perfect trading environment. Having said that, this morning’s futures trading session has seen copper re-trace slightly to trade marginally below the 400 level at 398.25 at time of writing, but still well above both the 9 and 14 day moving averages. Demand from China continues to grow for one major reason, other than as a base industrial material, namely as a major component of its future infrastructure. In short with the economic prosperity now growing and drawing increasing numbers of Chinese into the cities, the demand for basic infrastructure such as electricity and telecommunications, is now growing exponentially with a consequent demand for the primary metal. This demand can only increase putting further pressure on copper mines which are already running at full capacity, with the net result of driving copper prices ever higher.
