Just how low can copper go?

Market Pulse: October 29

Last week December 2012 copper opened at $3.6375 per pound and closed at $3.5500. While new home sales did show an increase in September 2012, building will slow down as winter weather approaches here in the U.S. and will lower demand for copper. Also if we see continued global economic weakness in Europe and Asia, that also will have an effect on demand.

On the daily chart below, you can see that ADX reflects increasing strength to trend as the numbers rise now at 31.6. MACD is bearish and Stochastics are in deep oversold territory. You can see the two “red vertical lines” highlighting technical trade signals from one of the tools at Trends in Futures called the TS Analyzer. When the first one showed up, I mentioned to wait for a solid break below $2.7000. The break took place on the second red line on Oct 19.  

On the weekly chart, you can see weekly ADX reflects increasing strength to the weekly trend with numbers rising now at 33. Weekly Stochastics are mid-range and coming down.  

Proceed to Page 2 for the latest COT Data...

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