Back
4 Feb 2015
Copper rebounds after PBOC rate cut
FXStreet (Mumbai) - Copper prices on Comex erased previous losses and spiked to 2.618 levels immediately after the People’s Bank of China (PBOC) ate cut announcement.
Forms Doji candle on daily chart
The red metal quickly retraced from the spike and now trades flat at USD 2.581/ pound, having previously posted day’s low at 2.556 levels Copper prices have formed a small doji on daily charts and awaits clear direction as traders still digest the surprise PBOC rate cut decision. The People’s Bank of China has cut its reserve requirement ratio by 50bps to 19.5 percent.
Copper prices are expected to remain supported on the PBOC move as weaker than expected recent Chinese data had raised expectations of PBOC rolling out fresh stimulus to spur growth.
Moreover, restocking ahead of Chinese New Year and increasing chances of the SRB (State Reserve Bureau) stockpiling the red metal also added to the rally in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.61, above which gains could be extended to 2.636 levels. Meanwhile, support is seen at 2.54 levels, below which it can extend losses to 2.50 levels.
Forms Doji candle on daily chart
The red metal quickly retraced from the spike and now trades flat at USD 2.581/ pound, having previously posted day’s low at 2.556 levels Copper prices have formed a small doji on daily charts and awaits clear direction as traders still digest the surprise PBOC rate cut decision. The People’s Bank of China has cut its reserve requirement ratio by 50bps to 19.5 percent.
Copper prices are expected to remain supported on the PBOC move as weaker than expected recent Chinese data had raised expectations of PBOC rolling out fresh stimulus to spur growth.
Moreover, restocking ahead of Chinese New Year and increasing chances of the SRB (State Reserve Bureau) stockpiling the red metal also added to the rally in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.61, above which gains could be extended to 2.636 levels. Meanwhile, support is seen at 2.54 levels, below which it can extend losses to 2.50 levels.