LME Comprehensive Trading Close Support Position Resistance 14th RSI 10th MA 30th MA
Three-month copper 3588/89 * 3550 * 3630 * 51 * 3629 * 3590
Three-month aluminum 1838/39 * 1800 * 1870 * 42 * 1867 * 1884
LOS ANGELES, Sept. 9: Dealers said that the London Metal Exchange (LME) base metal is expected to remain under pressure on Friday and may fall further after Thursday’s fund selling triggered a decline. Copper and aluminum futures lead Basic metal trend.
Copper futures and aluminum futures were pressured by technical selling of funds on Thursday, and technical charts show that futures prices will fall further.
Copper fundamentals are uncertain in the short-term, as the declining trend in inventory may have ended.
"The copper looks very weak. Copper fell below the moving average yesterday and there is a possibility of dropping 3,550 levels," a trader said.
"We believe that if copper really moves into a downtrend, it could drag down other industrial metals," Dutch bank brokers said in a daily report.
LME broker Triland Metals said that copper needs to quickly recover its 30-day moving average of 3,590, otherwise it may fall to 3,550 and 3,500.
At 0650 GMT, the three-month copper was at $3,582/87 a tonne, down $6 from Thursday's composite transaction closing level.
Aluminum reported 1,836/40, down 2 dollars.