Speculation on China’s demand for copper (JJC, quote) has sent copper to a seven week high this morning of $3.09 not seen since March 7th.
This now puts support for copper (CPER, quote) at the $3.03 level per pound and on the flip side resistance at $3.20 which is right at the 150 day moving average. If we can break and close above $3.20 level next level of resistance is at February high of $3.32.
The sentiment shift in China is extremely important for copper with China being the largest importer of copper; nearly 40% of the world’s consumption is China.
It important to note that China’s “construction season” is April and May which in turn is the time of the year China uses the most copper.
Playing copper can be risky and we want to play this via options market via one of the copper ETFs.
Be sure to check back in our Option Trading Service after the market opens as we look to take a position in the copper.
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