In the last five weeks copper prices are lower by ?6% finding mild support at the 61.8% Fibonacci level just above $3.18.?Expectations?of a continued?slowdown?in China has weighed on futures.?Being?China’s?demand?accounts?for?approximately?40% of the world’s copper?market?a?contraction?there?will?have a major?influence?on prices. The latest?evidence?of this?slowdown?came in the smaller figures in?purchasers?manages index indicating that manufacturing and?service sectors are losing momentum.?
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Volumes were relatively muted in base metals today as the ?next catalyst will be Yellen speaking tomorrow…?
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My stance is further downside will be seen and I expect to see rallies to be short lived. As for March futures I see resistance at the Fibonacci level just overhead near $3.28 in March.?Though?I will not?trade?copper?a further leg lower?would?lead me to?believe?that we could see pressure in?other markets as Dr Copper?knows?best. In my opinion?stock?markets and?energies?would be the most?likely?candidates.??
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