A bout of buying helped copper recover from the lows on Friday, 8th November at the London Metal Exchange (LME), but a lack of, fresh buying interest and continued technical selling dampened upside progress After falling sharply on Thursday, the market opened lust above support at 1,565 dollars/ton but speculator buying in the pre market provided solid support and the market edged higher. But resistance at 1,580 dollars/ton, the old support level, held strong. Dealers said the market is now waiting to see whether funds resume their recent buying spree before committing to positions. But most expect further gains to emerge early next week given that the longer-term uptrend remains m place. Despite this, there is more room on the downside and another push through the 10-day moving average at 1,567 dollars/ton could lead to a fall to the next support level at 1,540 dollars/ton. To regain last week's upward momentum1 the market will have to break through the major resistance area at 1,600 dollars/ton. But with consumer buying still absent, such a move may be difficult. The release of retail sales and producer price index data late next week will likely help in offerring directi6n to the funds and dictate whether the gains remain in place.
NSTL
