Chart of the day: Copper eyes rebound from retreat
Rolling front month futures contracts for high-grade copper traded in New York show signs of readying for a rebound after falling back from five-month highs in the wake of a warehousing scandal in the mainland port of Qingdao. The retreat from a high of around US$3.30 per pound in recent weeks has brought the price back towards a cluster of supports in the US$3.18 area, including the 50- and 200-day moving averages. A consolidation at this point would lay the foundations for a rally back up to US$3.30, which is also the 38 per cent Fibonacci retracement from a high hit in the first quarter of 2012.
Nicole Elliott is a technical analyst