OXR oxiana limited

caution might be called for

  1. 1,862 Posts.

    From MFD Global on Copper's performance overnight...

    "Copper is now at $8065, up $91, and although prices have pushed past the $8000 mark, real technical resistance, as
    our chart below shows, lies along the $8300 level. We note prices have had difficulty pushing above here on several
    occasions in the past, and we expect similar difficulty this time around. More importantly, our contacts in China report that nearby copper stocks are abundant, and that there is no noticable upside pressure on spot premiums. It seems, therefore, that the copper bulls are relying on continued LME stock declines to keep the rally going-- this is fine, until when we get an uptick in inventories, in which case the selling could be rather abrupt and heavy. In addition, our chart shows that the copper complex is now in overbought territory, with our RSI reading at 69, further reason to be
    cautious here.
 
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