December copper futures - daily chart 8th November 2010
The December copper futures contract closed higher once again on Friday, ending the futures trading session with a relatively narrow spread up candle which built on the solid gains of Thursday, and closing the week just below the 395 price level. As such, Thursday proved to be a decisive day as we broke and held above the key 390 price level, which is now set to provide a platform of support for the next phase of the bullish trend. A further feature of Thursday’s trading session last week was the test of the 9 and 14 day moving averages which held firm during the down side probe , further confirming the positive sentiment for the commodity at present.
With all three short term moving averages pointing higher, and with the breakout now complete, we can expect to see a sustained move higher for copper futures as the upwards momentum is re-established once again. The fundamental picture also supports this analysis at present with sustained demand continuing to eminate from China, as the major copper mines struggle to meet this demand, pushing the base metal higher as a result.
