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Copper in Shanghai Set to Advance to Pre-Lehman High: Technical Analysis
Sep 3,2010 10:30CST
industry news
Source:SMM

Sep 3 (Bloomberg)--

Copper futures in Shanghai may climb to 64,000 yuan ($9,412) a metric ton by the yearend, a level not seen since the collapse of Lehman Brothers Holdings Inc. in 2008, Cifco Research Institute said, citing trading patterns.

Copper has completed a so-called bull-flag pattern, with support at 58,000 yuan, and may break through resistance at 60,000 yuan, the company’s Beijing-based researchers Zeng Ning and Shen Dan, wrote in a note yesterday. In the formation, which occurs during periods of gains, price movements are meant to resemble a flag on a pole. Resistance levels are marked by clusters of sell orders, while support points have orders to buy.

Copper for December-delivery on the Shanghai Futures Exchange reached 60,380 yuan a ton yesterday, the highest price since April 27. The most-active contract is little changed this year after more than doubling in 2009 on stimulus spending and state stockpiling. The metal last traded at more than 64,000 yuan a ton in July 2008.

"Copper will spend most of September consolidating in the 58,000 yuan to 60,000 yuan range, building a base for a move higher by the end of the year,” the two analysts wrote. “However, buyers should remain cautious as the economic recovery slows down and as liquidity thins out ahead of the National Day holiday.” China’s markets are closed Oct. 1-7.


            
      


 

 

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