The current bullish trend for copper shows no sign of slowing just yet with the red metal touching a 3 year high largely driven by increasing demand from China(FXI, quote), along with a fall in inventories in the London warehouses.
Commodities price are firmer today with base and especially precious metals ending a bad run off losses, while crude oil has extended its gains from the day before when it rallied sharply on the back of the weekly US oil inventories report.
The rally for copper finally came to an abrupt halt yesterday as weak economic trade data news from China dealt the base metal a mortal blow, sending it plunging lower and closing the session with the wide spread down candle on very high volume, and signalling the end to the rally of September.
As global markets return to business after the summer recess, and commodity markets attempt to find some much needed traction, the story for copper is very different as it continues to remain range bound and waterlogged across all the slower time frames.
The Australian dollar initially tried to rally during the day on Wednesday, but turned around back around to form a bit of a shooting star.
After the malaise of the last few months, copper finally nailed a key technical level firmly into place on Friday as the red metal surged higher, closing the session with a wide spread up candle supported with excellent volume, thereby confirming the validity of the move higher.
