Jul. 1 (Bloomberg) –Copper may rise after climbing above a moving average amid reduced concern Greece may default on its debt, a survey showed.
Six of 11 analysts, investors and traders surveyed by Bloomberg, or 55 percent, said prices will gain next week. Three predicted a drop and two forecast little change. Copper for three-month delivery was up 3.6 percent for this week at $9,375 a metric ton by 4:45 p.m. yesterday on the London Metal Exchange.
The metal yesterday advanced above its 100-day moving average at $9,362 a ton for the first time since April. Copper has traded near or above its 200-day moving average since early May. Moving averages can serve as directional signals for a commodity, security or index to traders and investors who study technical charts.
"Technical levels getting breached" were "forcing shorts to cover," said Randy North, a trader at RBC Capital Markets in New York. Short-covering refers to purchases that reverse bets on declining prices.
The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling the majority of respondents expect a decline. The green line shows the copper price. The survey data shown are as of June 24.
The weekly copper survey has forecast prices accurately in 69 of the past 143 weeks, or 48 percent of the time.
This week’s survey results: Bullish: 6 Bearish: 3 Hold: 2