Prospects for LME Copper and Aluminum Futures: Copper hits record high but stocks are expected to weaken

LME Comprehensive Trading Close Support Position Resistance 14th RSI 10th MA 30th MA
Three-month copper 3775 * 3725 * 3850 * 72 * 3671 * 3631

Three-month aluminum 1880 * 1810 * 1900 * 64 * 1845 * 1867

LONDON, September 27: The London Metal Exchange (LME) copper hit a record high of $3,812 per ton on Tuesday, but analysts and traders believe that the market will be vulnerable.

The rebound in oil prices triggered more fund purchases for commodities and pushed copper higher, but the increase in copper supply and the strengthening of the dollar may cause copper to fall sharply.

A LME trader said, "After the $3,800 breakthrough in copper, it caused some stop losses to be triggered earlier, and then it fell back slightly, but soon it was boosted by technical fund buying and rose above the 3,800 level."

At 0718 GMT, the three-month copper price was 3,800/3,805 US dollars per ton, which was higher than the closing price of 3,775 on Monday. The previous high point was just below 3,800.

A trader in the Shanghai market said that "copper is still rising, but most Chinese buyers are reluctant to buy at such a high level."

Copper's uptrend is mainly due to the fund's speculative buying, and an analyst said that the fund is likely to be turned into a seller in the near future to take profits. "As the end of September is approaching, we have to see if the foundation has profited. That may pressure the price to go down in the short term."

Three-month aluminum was supported by the strong copper futures and was quoted at $1,887/1,890 per ton, which was at 1,880 at the end of the previous day.

Traders said that the dollar rose to a two-month high against the euro and the yen, which means that non-US consumer buyers believe that the price of base metals denominated in US dollars is more expensive, which may also trigger a fall in copper futures.

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