Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Commodities  >  LME Copper Cash       

My previous session
Most popular
Analysis summaryMarketScreener Strategies

Sell in May and go away

share with twitter share with LinkedIn share with facebook
share via e-mail
05/29/2012 | 04:06pm

The month of May for copper should end with a fall around 10%, which is the second biggest monthly decline, since November 2008. The metal continues to be in backwardation condition even if the discount with 3 month-delivery contract is reduced from end April peak, where the spread reached $150. The discount on the future’s contracts has given a good opportunity to sell the copper on the spot market. For this reason, during last month, we attended to a strong reduction of Chinese stockpiles. In fact, copper inventories monitored by the Shanghai Futures Exchanges fell 9.4% last week, slumping for a seventh week after has reached record levels. While copper inventories tracked by the London Metal Exchange rose 1.2% to 225,800 metric tons, the highest level since May 8.

Besides US hedge funds have short positions above 30,000 tonnes, according to last report of Commodity Futures Trading Commission. On the other hand these low prices could push Chinese investors to give new power to copper’s demand.

Technically, the volatility remains in the one year average, even if is on high levels of May.
In daily data, the short-term support of USD 7630 seems to have stopped the bearish trend. During the last month the sell pressure has won the day and for this reason we are not confident yet for a recovery. Only the overpassing of the USD 7850, could give a new strength to set up an upward trend. In this case, we suggest to open a long position in order to aim a return in the area of USD 8500 (2012 highs).

Oscar Salza
© Zonebourse.com 2012
share with twitter share with LinkedIn share with facebook
share via e-mail

Disclaimer: The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.

Duration : Period : Day
LME Copper Cash Technical Analysis Chart | MarketScreener
Duration : Period : Week
LME Copper Cash Technical Analysis Chart | MarketScreener