Jun 22, 2010 (Bloomberg) -- Copper must climb above $6,935 a metric ton to extend gains, according to technical analysis by Barclays Capital.
That price marks the 200-day moving average, analysts including London-based Phil Roberts said in a report. Copper is 5 percent below that level. The attached chart shows the advance ended this month when London Metal Exchange prices slid to $6,037.50 a ton on June 7, the lowest intraday level since October, according to the bank.
"Bulls need a break of the 200-day to indicate a greater base and turn higher," the analysts said. Copper may slide as low as $5,818 a ton, a level last seen in October, they said.
Copper for three-month delivery fell $18, or 0.3 percent, to $6,585 a ton at 7:01 a.m. on the LME. The contract yesterday gained 2.6 percent, the most in a week. The metal, used in electrical equipment and construction, is down 11 percent this year.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. A moving average is a technical analysis indicator that shows a commodity’s average value over a specified time period.